I despise this decision. I should be able to tailor my experience to my liking, especially since I don't play games online. What's the harm in letting me have a joypad with six buttons on the front? It's literally what Capcom fighting games are designed to use. Why can't I have a D-pad that works well with fighting games? The Xbox Series controller is better than last generation's joypad (and much better than the generation before that), but for some of us, it's still not good enough.
Also, it's unlikely that 8bitdo will buy a license to make controllers for the Xbox. It's the least popular console of this generation. You're charging for the right to make controllers for a game system that's well behind its competitors. Why do that when you can make controllers for the Switch or the PC, where you can sell more product at a lower cost? It's just... stupid.
[Edit: @ArugulaZ@kbin.social points out correctly that this controller does not with with Xbox - it’s for mobile. Oops. There are some that do though - see later replies!]
Why wouldn't 8bitdo buy a license? There are one 3 gaming consoles, so being 3rd really makes no difference. And MS/Xbox still has a huge impact on the gaming industry.
I'm not defending the walled-garden decision, but the Xbox market is not small and this is unlikely to prevent controller manufacturers from supplying controllers to Xbox customers.