AFAIK Sega did it twice on the Saturn and the Dreamcast controllers…
I think the problem grew over the time… Companies try to cheap out on parts as much as possible, try to limit the lifetime of said parts to about 2 years so people will have to buy new controllers…
My understanding is that no first party controller (Sony, MS, Sega or Nintendo) uses hall effects.
AFAIK Sega did it twice on the Saturn and the Dreamcast controllers… I think the problem grew over the time… Companies try to cheap out on parts as much as possible, try to limit the lifetime of said parts to about 2 years so people will have to buy new controllers…