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Yup came here to second the above post, seems like that deadzone has been reverted to the pre-dawntrail one with patch 7.01. And I hate it. It sure is smoother but now doing something as simple as walking in a straight line is near impossible without slightly veering left or right. Also zooming in and out causes the camera to spin. I wish there was an option to have the cross-like deadzone enabled/disabled
The camera spinning has been driving me crazy too. I forgot to mention how the deadzone affects both sticks and not just for walking.
I really hope they bring the deadzone back as an option because I've had to painfully get used to playing without it for 6+ years after moving to PC, and it finally felt useable after Dawntrail.
I also really wish they would revert it back. I haven't missed the camera spinning while zooming for a second. It may feels a bit smoother now, but I would trade that in for the better control any time!
The DEADZONE is indeed incorrect but it's because they reset it on patch for some reason. You can fix this by going to System>Gamepad>Stick Sensitivity and setting it to 20. This should feel pretty normal. What IS a bug is that they have removed the virtual "gates" that lock you to cardinal controller directions if you're close to them. This means you cannot walk in a straight line.
Edit: for any that see this, I made a thread that reports what's causing the no straight line problem rather than the deadzones, which are easily fixable by your gamepad settings.