Straight from 1up.com
If you don't have carpal tunnel syndrome right now, thank Gunpei Yokoi. One of Nintendo's first creative engineers, he designed several hit toys for the company before video games were even part of its repertoire. But in the early 80's, as liquid crystal display (LCD) handheld games were becoming a national fad, Yokoi led a team that designed some of the smallest, coolest, and most amusing LCD games ever made -- the Game and Watch series.
Early Game and Watch games only needed two or three buttons to work properly; many of the games were played entirely by moving the character left and right. But in 1982 when Nintendo crafted a Game and Watch version of Donkey Kong, four-directional movement was needed. But Game and Watch was designed to be held in the hands and operated with the thumbs, not set on a table. So players moved Mario around with a tiny pad in the shape of a plus sign, using only gentle thumb movements to accomplish what took two hands on the Atari 2600.
Got to give credit where credit is due, so Nintendo gets credit for the D-Pad.
http://www.1up.com/do/feature?pager.offset=2&cId=3143627
As far as analog goes, nope
But it's the Atari 5200's controller that did the most to frustrate gamers and set back controller design about ten years. This is because of the company's ill-thought-out decision to use an analog joystick for its next-gen machine. This would have been a brilliant move except for the fact that the stick wasn't self-centering -- meaning that when you let go of it, it stayed in the same position.
Try playing Pac-Man like that. Hint: you can't. Oh, and the controllers were so cheaply made that they broke constantly. Certain companies did a brisk business in selling 2600-to-5200 controller adapters. Analog control, as we now know, is a fantastic thing that nobody wants to live without. And had Atari not completely balled it up on the first try, we might have been using decent analog sticks much sooner.
http://www.1up.com/do/feature?pager.offset=1&cId=3143627
So again Atari was the first to use Analog control. In fact N64 technically didn' even have a analog stcik. Read further
As is now widely known, the controller that Nintendo revealed at its Japanese trade show featured an analog thumbstick. After the failure of the Atari 5200 controller, analog joysticks were basically taboo in the video game industry. But Nintendo's thumbstick differed from previous designs in two important ways. First, it wasn't actually analog. Analog joysticks like the 5200's had too many moving parts and were prone to breaking. Nintendo's stick was digital, but provided enough levels of sensitivity that the distinction was moot. Second, Nintendo's stick worked just like a D-pad: you weren't gripping the handle but pushing it with your thumb.
http://www.1up.com/do/feature?pager.offset=3&cId=3143627
So Nintendo's analog stick wasn't even analog. It was still digital. Notice how 1up still references Atari's 5200 as an actual analog stick.
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