
At first he tried using an mbed microcontroller board but was unhappy with the latency built into the system that detected a button press, sent it via USB as a keyboard press, which was then interpreted as input by the game. He ditched the microcontroller completely and picked up a couple of 4021 parallel-to-serial shift registers. He had previously used this method to make his own SNES controller. The SNES uses two 8-bit shift registers to generate an 16-bit serial packet to send to the console. [Alex's] reused that system, adding an SNES controller plug to his arcade box, and using the SNES to USB converter he already had to connect to the computer. Now he’s got a portable controller for the cost of three buttons, the stick, and two IC’s.
http://hackaday.com/2011/09/08/arcad...ller-in-a-box/