After IGN pulled the original story that started this rumor, Tal from IGN reported the game was apparently running from a PC workstation behind a sheet, according to his Ubi source.
The rumor that it was running off an XBox 360 was started by a Microsoft rep.
Never heard the bit about the XBox controller. That's a new spin on the story. Everyone else, including the original IGN story, called it a third-party PS2 controller.
Considering this story actually uses the blog Noooz in the story as a source, I'd take all of this "news" with a huge grain of salt.
Here's the original text of the IGN story that was pulled:
IGN:
Ubisoft Montreal revealed its next incredible project, Assassins: Creed, exclusively for PlayStation 3 at E3 this year, much to the delight of Sony console fans and to the dismay of Microsoft consoles fans.
A third-person action game in the vein of Prince of Persia, Ubisoft Montreal's newest title shows off the next generation with fantastic texture work, early but promising animations, and newly envisioned levels of Prince/Spider-Men climbing/traversing. But the game, officially, is strictly exclusive to PlayStation 3. Ubisoft officially would not comment on a possible Xbox 360 version.
According to sources close to the company, however, there are potential plans for an Xbox 360 version at Assassins: Creed sometime in 2007. Additionally, Microsoft sources who asked not to be mentioned by name, claimed the demo, hidden behind closed doors at E3, was running on an Xbox 360 using a third-party USB PlayStation controller. The game system was hidden in a stand covered by a sheet. Again, Ubisoft officials would not comment.
I wouldn't be surprised to see an XB360 version of AC some day, as long as Ubi isn't still pissed off about the Lionhead deal, but this story as it stands sounds like Microsoft FUD to me.
