i think its a button issue.. try opening your controller.. provided u dont care about warranty and dont have the money for another....
Items needed:
Qtips
Rubbing alcohol
Small Phillips Screw Driver
Small towel
.............................................
open up controller with screw driver..
put small amount of rubbing alcohol on Q-Tip... find gel pads that have metal area where button is pressed down.. clean that area.. with q tip.. wipe with towel..
repeat this process with every single button... including R2 R1 L2 L1 buttons... Square Triangle X and Circle... Up Down Left Right D-PAd buttons as well... and there you go.. should be fixed... some users have reported issues with controller not working in game, but works fine on XMB menu.... this is due to a button being jammed/broke/or dirty and constantly sending a button pressed signal Rapidly... disabling any button you press from being read!