I also have the xbox version. it is undoubtedly a potentiometer issue.
Don't be frightened by that.
Once you get used to unscrewing it and cleaning the pots it becomes a routine bit of maintenance you can perform in about 20 mins. Open it up and get familiar with the insides. just be careful as you put it back together as the wires are very easy to pinch off. All you have to do is take it apart to gain access to the pots.. pull them out of their housing, rotate them to their full extent in each direaction a couple of times and clean away any grease or particles that may have collected.
I keep a bit of insulating tape to wrap the three connection wire points in after I have reconnected the pot to it's housing as this area is sometimes a little exposed near the area of hotglue that the manufacture has used to keep it in place.
All in all this fix will last about 2-3 months of heavy use before needing to be done again. It's not too bad once you get used to it and saves chucking an otherwise perfectly usable piece of kit.
This is what the pots look like:
The two pots for the roll and pitch are located in the base, the pot for the yaw is located in the shaft of the handle. This is in my opinion the harder of the pots to access as putting the handle back together is a bit more difficult. The top part of the stick contains a middle section that pops out when the two clamshell pieces either side are released from each other. A little tip to deal with this is to take a bit of tape and tape this third piece to one of the sides so it's easier to put bach together.
*N.B. There is a jutting out bar that slides home into a corresponding shaft when putting the handle back together that is
very close to the wires and if you are not careful it's easy to pinch them off. But take your time, be careful and it will be no problem.
Hope this helps