Steam has a built-in translation layer called "Steam Input." It can trick PES 2016 into thinking your generic controller is a Steam Controller.
The "could not be located" error is rarely a hardware fault. It is almost always a software handshaking issue between the aging PES engine and Steam's modern controller API. is the most consistent fix for modern Steam setups. pes 2016 steam controller could not be located link
PES 2016 has a separate launcher executable that handles controller detection. If this launcher doesn't run or glitches, the main game won't see the controller. Steam has a built-in translation layer called "Steam Input