Well now, I think this needs some front page news action. I would never think any company would stoop to this. All the empty threats there is a lot of material for a suit here.
The thing is that many companies are just one guy in reality. This guy paid some engineers in China to create the controller and financed the production using pre-order payments.
Most in the West don't have a grasp on how inexpensivly some electronics are made in the East. Yeah you get big name sites to take a Kinect apart and figure out that its production cost is like $80, but a lot of smaller stuff is really inexpensive. I bought some things from a reseller in China at less than 5% of the U.S. retail prices. That's from a reseller, including shipping and everyone who was part of the transaction already made money.
I wouldn't be surprised if the Avenger cost pennies to manufacture and it retails for $50.
EDIT: Best part of the Forbes interview "And then they realised how much actual juice this guy had." LOLOLOLOL