Leaked Xbox Elite 3 controller images show at least one oddball addition, but it'll struggle to compete in a radically changed market

Leaked Xbox Elite 3 Controller Images Reveal Radical Shifts in a Crowded Market

Recent leaks from Brazilian tech outlet Tecnoblog have shed light on two unannounced Xbox controllers, reportedly sourced from the country’s telecommunications regulator. Among the rumors is a compact gamepad tailored for cloud gaming, but the headline-grabber is undoubtedly the successor to the Xbox Elite Controller 2.

For gaming enthusiasts, the wait for news on this peripheral has been long. Since the Elite Controller 2 launched in 2019, the landscape of high-end gamepads has evolved dramatically. Today, third-party manufacturers offer controllers with full "pro" specifications—including rear paddle buttons, interchangeable D-pads, and replaceable sticks—at a fraction of Microsoft’s price point. With options like the feature-rich Gamesir G7 Pro available for around $80, Microsoft faces a daunting challenge: how can it justify an $180 price tag for a device that no longer holds a monopoly on premium features?

The "Oddball" Scroll Wheels and Design Quirks

While Microsoft has not officially announced the controller, the leaked images and regulator documents paint a picture of a curious device. The most striking addition appears to be two scroll wheels located on either side of the headphone jack.

(Technoblog speculates these might be designed for flight simulation games, but this seems like an overly niche focus. Dedicated flight sim peripherals would likely appeal more to that demographic than a generic gamepad add-on. Furthermore, their utility in mainstream genres, such as first-person shooters, remains unclear.)

Beyond these potential scroll wheels, the core design language seems familiar. The new Elite 3 retains the customizable nature of its predecessor, including:

• Interchangeable rear paddle buttons.
• Swappable analog sticks and D-pads.
• A dedicated button under the Xbox logo to toggle between local and Xbox Cloud Gaming modes.
• A smaller, yet still rechargeable and replaceable, battery.

(Image credit: Tecnoblog)

(Image credit: Tecnoblog)

The Hall Effect Imperative

The true differentiator, however, lies in technology that cannot be seen in static images: the stick technology. The critical question for consumers is whether Microsoft will implement drift-free Hall Effect sensors or Tunnel Magnetoresistance (TMR) sticks.

As the gaming industry moves toward 2026, the tolerance for analog stick drift—a persistent issue in standard Sony, Xbox, and Nintendo controllers—is vanishing. Consumers now have access to affordable third-party Hall Effect controllers that eliminate this problem entirely. If the Elite 3 fails to adopt these drift-free technologies, it risks becoming a non-starter for serious gamers who no longer need to pay a premium to avoid defective hardware.

Competition Beyond Microsoft

Even if Microsoft delivers on the hardware front, the Elite 3 faces stiff competition from other established players. For many users, the Steam Controller remains a compelling alternative. It features:

• Underrated trackpads that offer versatile control schemes.
• Built-in TMR sticks for precision without drift.
• Integrated rear paddle buttons (though fewer in number than the Elite’s four).

While the Elite 3’s four paddle buttons cater to a specific niche, the Steam Controller’s trackpads offer a broader range of utility for different genres, challenging the notion that traditional button layouts are superior.

(Image credit: Tecnoblog)

The Compact Cloud Gaming Controller

Alongside the Elite successor, Tecnoblog also revealed a smaller, more affordable gamepad. This device appears to be a straightforward, no-frills controller designed for portability and cloud gaming. It lacks the premium trimmings of the Elite line but includes the new toggle button for switching between local and cloud modes, signaling Microsoft’s intent to streamline the cloud gaming experience across all its hardware.

When Will We See Them?

Microsoft has not provided official confirmation or release dates for these devices. However, industry speculation points to the Xbox Games Showcase on June 7, 2026, as part of Summer Game Fest, as the likely debut event. Until then, the Elite 3 remains a speculative entry in a market that has already moved on, forcing Microsoft to prove that its brand name is enough to compete with the feature-rich, lower-cost alternatives dominating the field.