New lower price for Axon II ($78) and Axon Mote ($58).
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Those are probably identical to the ones found on a PS2 controller,
I need a joystick that has 2 degrees of freedom and two output wires (X and Y). The chip can only handle a 0 V to 1 V varying input, but I could always use resistors to modify the joystick output.
I know its not small or anything, but as far as cheap you, you can't get much cheaper than something like this joystick below.I pulled this out of an old analog Thrustmaster joystick I picked up at goodwill for $1.95. I also got several switches and another pot all for use with other projects.You can see it just has two pots, one for X and one for Y axis. Should be easy to interface for your project.