I worked at a military contractor one summer, decades ago. Back then, nothing went out that wasn't mil-spec. My novice understanding of this was that equipment used by the military must be able to withstand a much wider variety of stress, and exhibit a much greater degree of usability under every possible scenario, than could be provided by consumer-level products. Specifically, my job at the time was sitting in a dark room helping to measure the light output of switches that were used on airplane consoles. This was understandable because this equipment is not only life-or-death but must perform in chaotic and hostile environments.
TL;DR. Does the xbox 360 controller to be used on navy submarine work when say....it gets wet? (or just how does it deal with saltwater corrosion). Not to mention the security issues I see other people mentioning here.