This is good news. Microsoft have finally realised that the d-pad on their 360 controllers is marginally worse than Hitler. They are working on a new pad that allows you to change the height of the d-pad with a quick twist, making such things as hadukens and whatever possible.
They (some R&D prick) say “The Xbox 360 Wireless Controller with Play & Charge Kit – with Transforming D-pad will be available worldwide beginning early 2011.”
That’s a mouthful. Not quite as clumsy as the PSP Slim & Lite but still pretty awful. Still, if it’ll up our scores on Pac-Man: CE then we’re all over this.