The unnamed source told the website that the pad is set to launch shortly and gamers will be able to "rotate the d-pad ninety degrees" and it will "raise up about a quarter of an inch." This new feature is said to be targeted toward fighting game fans.
There have only been a few revisions of the Xbox 360 controller since the console launched in 2005, so it will be interesting to see whether the introduction of this new revision will take-off and indeed whether it does what it's supposed it. If it improves control, it can only be a good thing.
Microsoft has yet to confirm the existence of a new controller.