Update: And it's now officially confirmed.
Original Story: According to a "trusted source" over on Joystiq, Microsoft is set to launch a new Xbox 360 controller featuring an improved D-pad sometime this Holiday.
The source went on to explain that the new D-pad will raise about a quarter of an inch when rotated 90 degrees, making it easier to pull off your Hodukens and Sonic Booms with flair.
This isn't the first time Microsoft has looked to improve the D-pad, with a Limited Edition PES 2009 controller peaking interests in 2008 (pictured above right). But, as LEs go, it was only sold in Europe for a limited period of time.
Holding thumbs for this one to be true.
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