To build an SMS Paddle controller, you can use this circuit which handles the analog to digital conversion of the current
button position and communication with the console.
Works like the standard Sega HPD-200 paddle.
Works on Japanese SMS and MarkIII consoles.
Small form factor circuit.
Compatible with non-Japanese systems
Special "export paddle" mode
 Some Japanese games with paddle support, when used on a non-Japanese SMS or Genesis/Megadrive console, will detect the console is not Japanese and will then expect an "export paddle" to be used. Since the "export paddle" works differently, a Japanese paddle (HPD-200) cannot be used.
 Even though the "export paddle" has as far as we know never been commercialised by Sega, some games include code to support it. "export paddle" mode is to support those games.
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