It wouldn't. Which is why I suggested a normal 8-way joystick.
Actually It will, but you do need a hacked PS3 controller
I have a U360 set up as a dedicated 4 way on a donkey Kong cab with no PC and no USB
there is an output mode that allows for dedicated 4 way or 8 way mode
there is a breakout cable that is normally used as an input for buttons but can be used in output mode to connect to a hacked PS3 controller
you do need a PC to initially set the mode
read
here under features where it says output mode
also see
here under output mode for technical info
get a hack from HarumaN he does fantastic work!!!!
and if you need any help hooking it up I'll walk you through it