yeah that's pretty corroded... and yes, that's typical. the machine joypad isn't really designed to take drinks being spilled on them... which is why they only used them on a couple machines...then stopped using them.
I usually find some pretty gnarly crustys around the IC, but your's looks good. it looks like just the power wire had corroded itself off... it's probably still good.
at this point... you can either
-find a scrap board somewhere with the same connector and replace it.
or do what I'd do...
-just chop off the wires and solder it directly to the board.
(but i'm crazy and can do stuff like that. your mileage may vary)