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

Brian “Biscuit” Watson, a game developer whose work spans four decades, recently went on YouTube to tell some of his stories. One of the most interesting revelations he shared on The Retro Collective was the existence of the PlayStation 1 controller prototype, called the PlayStation Puga, that housed an entire PlayStation 1 console. Watson said that this “handheld” was specifically built for the Brazilian market, which had tight import regulations, and was also intended to be manufactured within the country. It was also supposed to come with 4GB of memory that could hold 10 games, and four AA-sized batteries apparently power it and connect to your TV via an included cable.

The prototype was working really well, but it encountered issues with game titles that were intended for inclusion. “The unfortunate problem is that Sony licensing couldn’t get their act together about the royalty terms for each of the games. So, it’s like they’re trying to get in touch with Rockstar and a few other places, and they were wanting way too much in the way of royalties,” Watson said. “But what really stuck in my craw with that one was even if it was a Sony game, they had to negotiate with a separate unit of Sony, and they were never happy about how much royalty they were getting.”

Since the gaming controller and console combo was designed to sell at a low price, they expected to make only 10 cents per unit sold and were unhappy with the pricing. Since it seemed Sony would not be able to ship any games with the PS1 controller console, it canceled the entire project.

Watson actually showed the completed controller to the present audience, but it unfortunately doesn’t run. It does boot into the debug stub, but he doesn’t have any of the other required software to make it run. Still, it’s equipped with an Arm-based processor running at 650 MHz and emulated the PlayStation 1 pretty well. It also lasted about 20 hours on a single set of four AA batteries, which is an impressive feat for the time (and still is today). Nevertheless, the project was not wasted at the emulator built for that system eventually found its way into the Sony Xperia Play.