Many people have been reporting defects in their Virtua Stick High Grade, and for a joystick meant to be used in a game like Virtua Fighter 5, any fault is inacceptable, which has prompted Sega to (finally) issue a recall for the product. (Official Recall Page)

Sega has already shipped a new batch of functional sticks. If there is a sticker with a new barcode on the back of the box, it means the stick has been verified. If you don’t have the box, check the back of the controller. An engraved M or S means the controller has been tested. If you don’t have an engraving, you should contact Sega for more info on how to replace your stick.

Virtua Stick High Grade (PS3)
Buy Virtua Stick High Grade (PS3) at Play-Asia.com
Virtua Fighter 5 (PS3)
Buy Virtua Fighter 5 (PS3) at Play-Asia.com
Buy Virtua Fighter 5 (PS3) at YesAsia.com