I was browsing mmmonkey ,and came across this tutorial on how to mod an nes controller to pc engine. I was wondering if I can use the schematic (without butchering an nes controller) to make my own arcade stick. Is it possible? http://www.mmmonkey.co.uk/nes-to-pc-engine-controller-mod/
Sure. That chip is what's used the original 2 button PCE controller so you can wire it to whatever contacts you want and that setup will work as a 2 button controller.
I also designed an adapter that will let you do this: https://segasonicfan.wixsite.com/retro/uni-gen-to-pce
If you’re building an arcade stick, this is what you want: https://oshpark.com/shared_projects/h16gYEWV Author has 1P and 2P versions.