This video demos using an XBox 360 controller with Reaktor:
Take a copy of glove pie, an x box controller and a copy midi yoke and a copy of Reaktor and your away.
Glove pie converts any inout to any output, in the case x box controller signals to midi signals, midi yoke then routes this into reaktor and a sample synth type machine built in there does the rest.
left analogue stick controls the synth pitch, buttons fire various one shot samples, operate gates for oscisllators or trigger a loop, the right analogue stick controllers a filter.
This is a nice demo of what you can do, reusing mass produced gear for music – and also that using it to make msuic is a lot harder than Rockband.