The Adafruit Analog 2-Axis Thumb Joystick Breakout Board Mini-Kit makes it easy to mount a PSP/Xbox-like thumb joystick to your project. The thumbstick is an analog joystick - more accurate and sensitive than just 'directional' joysticks - with a 'press in to select' button. Since it's analog, you'll need two analog reading pins on your microcontroller to determine X and Y. Having an extra digital input will let you read the switch.
The pack comes in three parts - the joystick itself, a soft-touch rubber 'hat' and a nicely designed breakout board designed so that you can attach the joystick to a panel easily. A 5 pin 0.1" spaced header on the PCB (header not included) makes it easy to connect either in a perfboard/breadboard setting or free wiring. You'll need to solder the joystick into the PCB using a soldering iron and solder, but its very simple and will only take a minute.
Kit Contains 1 x PBC, 1 x 2-Axis Joystick, 1 x Soft-touch Rubber 'Hat'
2-Axis Joystick with 'Push In' Select Function
Usable with any Voltage up to 5V (1 Milliamp Draw when used with 5V)