I had no idea the joystick used 4 then 8 way joystick movements!
The difference between a 4-way stick and an 8-way stick is the shape/size of the restrictor plate and/or actuator.
https://slagcoin.com/joystick/restrictors.htmlA 4-way will have a diamond or clover-leaf shaped restrictor so you can hit the cardinal directions, but not diagonals.
An 8-way will have a square, circle or octagon restrictor.
The servo-switched ones turn the restrictor 45 degrees to switch between a 4-way diamond and an 8-way square.
The TRON stick has this diamond-shaped urethane restrictor.
- If you press lightly, you don't hit diagonals.
- If you press harder, you can hit diagonals.

The only level that really needs the 4-way is the Light Cycles. If you hit a diagonal, you get a stair-step pattern.
The Battle Tanks level is technically 4-way, but will play OK in 8-way mode.
The I/O Tower and MCP Cone levels are both 8-way.
I have more questions
Ask away.

If I take too long answering, you might find the answers in some of the over 1.7 million posts here.

Scott