If you searched this question on the internet, you will mostly come across articles that rant on the topic but not really answering the question. After searching, I finally found something that answers the question to the best of its ability.
Sony, Mircosoft and Nintendo have to cover development costs. They test the controllers over and over for glitches, bugs, button sticking, durability, etc. This makes competitors steer away from making cheap alternatives because of the development costs. The cheaper ones that are being made are usually of less quality, not as durable, not as responsive, and possibly do not have the full features of the standard controller.
Another reason is patents. It cost money to have patents and having patents prevents the competitors from being able to use that design which stops them from making cheaper controllers.
However, there is another thing consider. Without having to look it up, I know that technology is changing and that controllers are more advanced today then they used to be. I have been playing games since the NES era. That controller was wired with a 4 way D-pad and 4 buttons. That was it. Nowadays, they have touchpads, motion control, at least 11 buttons, led lights, rumble and vibration, are wireless, have handles, are bigger, etc. More technology equals more money.
Source
French. E. (2019. March, 1). Why are gaming controllers insanely more expensive than they used to be ? Do Sony and Microsoft charge a mark-up for their brand or something?. Retrieved from https://www.quora.com/Why-are-gaming-controllers-insanely-more-expensive-than-they-used-to-be-Do-Sony-and-Microsoft-charge-a-mark-up-for-their-brand-or-something.
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