Further to this question, I'm looking for a device that will allow me to connect two USB hosts, while still being fully programmable. I would like something that can do the following:
Masquerade as an arbitrary USB device
Take input from a PC and do nothing but pass it on to the other host.
I've been looking for a microcontroller (preferably pre-assembled) that will allow me to do this, but have so far come up blank. Does anyone know of a controller (preferably cheap) that will allow me to do this?
This is non-sensical from a USB perspective. USB is a host-based protocol: a device will never send data unless a host requests it first. Keep in mind here, 'host' and 'device' have specific meanings here within the protocol itself; you can think of a 'host' as the master and the 'device' as the slave. These roles are baked into a USB controller. There is no way to convince a standard USB controller in any given PC or peripheral to swap roles. There are add-in cards for PCs that are USB device controllers (making your PC act as a device), but 'cheap' is not a word I would use to describe them.
What you really are trying to do is create something that is a USB device to device bridge. So, alright, you need to have two USB(2.0) device controllers (maybe not that expensive, some micros already have to on-the-go controllers). Then you have to get them to pass something meaningful to each other. That's really hard because, as I mentioned above, hosts must tell a device to send data, and can send data to a device whenever it wants. Assuming a game controller shows up as a HID device (assuming the console doesn't listen for some weird, custom descriptor, and use some weird, custom protocol), interrupt pipes will be used to transfer data. This pipe is guaranteed to be polled at some minimum rate. So you have the console requesting data at some rate, which is not fixed, and a host-as-gamepad sending data at some rate. It's going to impossible for the two to sync up, so you'll need some kind of decent sized buffer on the gadget you're trying to create, which adds more $$ and more complexity.
USB is also pretty fast. In high-speed (USB2.0), frames are 125 microseconds long. That means you have to be completing requests at around 8KHz, which seems slow compared to the clock speed of a microcontoller, but keep in mind you have to be doing everything else at once. I'm not sure if there's a hobbyist-level microcontroller that's going to have everything you need, especially one for which you don't need to roll your own USB stack.