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Heck, just check the latest Playstation controllers and in specific: how often they use the extra touchpad... not often because it takes control away.
As much as us SC fanboys trying to cope, the original controller is not a huge success and failed to gain massive adoption among PC gamers, and Valve don't want to deal with that again.
It was a test run for Steam Deck. If they made an upgraded version, people would buy it. Especially now that Steam Deck is basically a 2.0.
Hard part 1: Programming a main board to emulate the Steam Controller protocol.
Open source project for a programmable main board: https://github.com/FreeJoy-Team/FreeJoy
Open source projects to reverse engineer the Steam Controller's protocol: https://www.reddit.com/r/SteamController/comments/5qktdh and https://github.com/sm-Fifteen/SteamControllerTools
Hard part 2: Getting all the controls you could possibly want.
Circular track pads (example): https://www.mouser.com/c/?marcom=118816186
Haptic feedback modules (example): https://www.mouser.com/c/electromechanical/industrial-automation/solenoids-actuators/?q=haptic%20feedback&instock=y
Accelerometer/gyroscope (example): https://makeradvisor.com/tools/mpu-6050-3-axis-accelerometer-and-gyroscope-sensor/
The triggers are probably going to be the hardest parts to get right. I couldn't find premade ones in a quick online search.
Sadly https://inputlabs.io/ (a set of DIY controller plans and parts shop) doesn't seem to use analog triggers. But it's probably full of ideas.
Hard part 3: Building the shell. Probably involves a 3D printer or a 3D printing service.
Or if you have a spare Steam Controller case and don't mind reusing the layout, remove all the broken bits and fit it with new ones.
Hard part 4: Programming the main board to talk to controls.
Buttons and joysticks should be easy.
Circular track pads: https://github.com/2bndy5/CirquePinnacle
Haptic feedback: https://github.com/topics/haptics?l=c%2B%2B
Accelerometer/gyroscope (example): https://randomnerdtutorials.com/esp32-mpu-6050-accelerometer-gyroscope-arduino/
Hard part 5: Wireless.
Someone would need to reverse engineer the dongle/SC protocol.
Alternatively, Bluetooth LE: https://github.com/lemmingDev/ESP32-BLE-Gamepad
Trackpads are such an invaluable input method, despite the learning curve, it's really a shame that more companies don't follow suit.
As an aside, a personal pipe dream of mine is a steam controller 2.0 (or alternative), with capacitive joysticks, scroll wheel styled bumpers, four back buttons and a port for accessories like the mini keyboard chatpads.
Honestly if they would release a version of the steam deck that doesn't have the computing hardware components I'd buy it in an instant, even if it cost like upwards of $100.
Edit; some earlier beta models of the steam controller had the face buttons placed around the trackpad, I'm curious how that felt, if not too unwieldy in practice I feel like that would be a decent solution to fit everything inside a standard sized controller layout.
One the few things I learn from Steam Controller is you cannot force new gimmick to new users and expect most of them to adapt without issues when they have the choice of not doing that and instead sticking with the familiar twin sticks controllers.
Valve had conducted an open beta test with that prototype for select few and they hated it. Perhaps they can bring it back but as extra buttons for you to assign whatever inputs you want instead of completely replace the familiar face buttons.
A Steam Controller 2.0 is what the world needs. I liked your concept. If they manage to not repeat the mistakes they made when they launched the first one it defintely has the potencial to be known as the best controller ever (like the first one had). But they definitely neet to focus on hard marketing and how to make the first one even better (or on how to mix the SC with Steam Deck and make it even better).