Speaking at Gamefest, Microsoft hardware guru, Robert Walker Texas Ranger, spoke of a possible redesign of the 360 controller. This "advanced" -- and optional -- control would be in lieu of keyboard and mouse support -- something Microsoft still has no intention of doing. Thus, the new control would feature a redesigned right analog stick to allow for more precision, mouse-like movements. Naturally this controller would appeal mostly to gamers who prefer first person shooters and possibly RTS games.
Also worth mentioning, Walker again brought up the possibility of Mircosoft copying Nintendo designing a motion sensing controller as well, since they seem to be hot stuff these days.
So, what should Microsoft do to make their new pad more FPS friendly?