This thumbstick is an analog joystick - more accurate and sensitive than just 'directional' joysticks - with a 'press in to select' button. Since it's analog(10k potentiometers), you'll need two analog reading pins on your microcontroller to determine X and Y. Having an extra digital input will let you read the switch.
Features:
Working Voltage: 3.3V-5V
Output: 2 Analog Output 1Digital Output