They still use potentiometer sticks, which degrade over time due to physical contact between all the bits vs hall effect and TMR which uses fancier magnets that require less physical content.

The big 3 console brands all don't use HE or TMR, since potentiometer sticks are cheaper and they see the constant replacement of controllers (or their parts) by consumers as beneficial to their profits, making the shareholders and big business officials happy.

But then you have third-party brands like GuliKit, GameSir, and 8BitDo, who use HE or TMR to help differentiate from the big first-party players and to stand out from the crowd.