Commodore Amiga – The Settlers / Serf City: Life Is Feudal (1993)
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If one mouse goes into the keyboard PS/2 keyboard connector (I think they were the same connector) then yes, very unusual magic.
MS-DOS made it much more difficult... using one mouse required that a mouse driver be resident in the 640k base memory and connected via COM or PS/2. Settlers had internal code to access a second serial based mouse but it wasn't straight-forward at all.
The DOS port of Lemmings didn't bother.
Basically, the mouse buttons were wired directly to pins - the same pins that joystick buttons would be wired to. Then also, the left/right and up/down steps would be indicated by a rising pulse on one pin with a direction indicated on another pin. The same pins that would be used for the left/right and up/down microswitches on a joystick. The way this was implemented by most early mice was to have two sensors on a sense wheel slightly out of phase, so as the sense wheel rotated it would produce a square wave on both wires. When one pin had a rising pulse, the other wire would be high if the wheel was going in one direction, and low if it was going in the other direction.
I tested that at one point when one of the 6526's on my C64 broke. I don't think the reverse would work, as I think AmigaOS used the timers, but never tested.
(My parents were not amused that I opened the machines and swap chips around...)
m68k is quite comfortable to write assembly for, with 8x GPRs (D0-D7) and 8x address registers (A0-A7), all 32 bit, and flat memory model.
8086 OTOH not so much. More like painful.
16 bits, few registers, many opcodes and addressing modes operate with specific registers, and the mess which is segments, needed because 16bit would otherwise only adress 64KB.
The bug was that the game didn't check that the road was yours. So, if an enemy had a road running along their border, you could place a flag right next to it on your side of the border, then click the button, and you'd have a new road crossing the border, and the two independent road systems would be connected. And because all the goods were fungible and distributed on a supply/demand basis, your enemy could start supplying you stuff.
Each subsequent game released in the settlers series moved further away from the elegance of the original, trying to bring in elements that were more conventional Realtime-strategy based. While I like a good RTS, What settlers already had was also worth pursuing.
I might give WideLands a go. There's also Before We Leave from https://www.balancingmonkeygames.com/ which captures much of the aesthetic of the original settlers while being in a completely different setting (disclosure: I know the developer of BWL)
In this sense I would compare Settlers to Populous, not Warcraft.