There are physical dongles that act as "USB Network Joysticks"—essentially wireless bridges. A common example is using an ESP32 microcontroller flashed with firmware to act as a gamepad receiver.
A standard USB joystick driver works locally. When you plug a stick into Port A, Windows 10 installs a .inf and .sys file. The HID (Human Interface Device) driver reads the USB descriptor. usb network joystick drivers windows 10