From an IGN article with Itagaki from Team Ninja:
This is surprising news to me. Although very few games seemed to take advantage of the analog buttons, this still seems like a step back for me. Also this would pretty much make games that used the analog buttons on the Xbox uncompatible with the Xbox 360. If this is indeed true, this is disappointing news.
Famitsu Xbox goes into specifics on Team Ninja's lineup. First up is DOAX2, which Itagaki reveals is a true sequel to Dead or Alive: Xtreme Beach Volleyball. In addition to volleyball, DOAX2 will include one additional main game. Volleyball and the new game will serve as the pillars for DOAX2, but Team Ninja is also planning on adding other means of waterside fun as well as a more robust casino element. Regarding the volleyball gameplay, Itagaki states that because the buttons on the Xbox 360 controller are not analogue, the gameplay will have to be adjusted accordingly.
This is surprising news to me. Although very few games seemed to take advantage of the analog buttons, this still seems like a step back for me. Also this would pretty much make games that used the analog buttons on the Xbox uncompatible with the Xbox 360. If this is indeed true, this is disappointing news.