Sony crammed an entire PS1 into a DualShock controller that connects to your TV, but killed the project — PlayStation Puga offered game studios a mere 10 cents per unit sold

Sony successfully built a PlayStation 1 console that fit inside a controller but had to cancel the project after game studios were unhappy with the royalties they would make from the project.
This news item is a historical revelation about a cancelled project from PlayStation's past, surfacing years after the fact.
It offers insight into past product development challenges and the critical role of developer relationships in the gaming industry, rather than reflecting current market shifts.
Nothing changes as this was a historical project that never came to fruition and is not impacting current market conditions or strategies.
The immediate effect is a historical curiosity for gaming enthusiasts.
It might prompt discussions about the profitability models between console manufacturers and game developers in the early console era.
Potentially, it could influence future agreements or raise awareness for other unreleased industry projects if similar details emerge.
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Read at Tom's Hardware