I mean the xbox and Playstation controllers are both actually really good, sturdy, reliable controllers; I'm sure a contractor could do "better" for whatever meaning of the word better for specialist cases like the military, but... why? If an xbox controller breaks, they can just pull out a new one.

War is as much about cost as it is about effective means of killing others. I can't say how much it's used because of a confirmation / media bias, but cheap drones are used effectively in Ukraine, plain commercial off the shelf drones (with matching controllers) with a bomb strapped to them taking out tanks and crews (who often leave their hatch open in the clips I've seen).

A few hundred bucks to take out a multi million tank sounds like a really good exchange.