No, trust me, it was actually analog.
A little history on the Atari 5200:
The 5200 shared much of it's architecture with the Atari 400/800 computers. However, it featured a different cartridge connector and completely different input device. It's was a non-centering analog joystick that allowed for full 360 rotation. It also featured a keypad and had a pause button. While it was innovative for its time, it was also very unpratical and didn't work for everything. Pole Position was actually quite good with this joystick, but Pac-Man played like crap cuz the game was only 4 way and this thing had a time detecting those 4 ways. Needless to say, while Atari did have it first, Nintendo perfected it much later.
WOW, AM I THAT OLD?! ouch...