Ew3 - You're correct about the modular approach... My hope is to create a new standard for use with computers, consoles, and even Coin-Op Cabinets (FWIW, my first design concepts were for the ColecoVision/Atari 2600...

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The flexibility of the design allows one to use the system with a variety of computers/consoles by swapping out the Header Module.
The Header Module pictured was designed for use with MacMAME... A PS2 Header module would likely only contain the Start and Select buttons.
For prototyping purposes, I suppose I'll have to hack a DualShock 2 controller... I was really hoping to find a pre-existing solution, but if the Mark II works out the way I'm hoping it will, and it goes to manufacturing, I'll have a better solution in place by then...

My major concern about using a hacked controller is the analog sticks... If I understand correctly, the controller uses 5K pots, whereas full size sticks typically use 100K pots...

Any suggestions there?