In my experience it will make no difference whatsoever. He with the most backlinks with the best PR will win...

I have beaten domains with exact match .com domain names using unintelligible .info domains on a regular basis. Concentrate on your backlinking!

An exact match domain does have an advantage over a domain with unrelated keywords. Keywords in the domain certainly provide value; although as mentioned its very possible to outrank these domains based on backlinks and other factors.

The example you gave would probably have very little difference as far as seo value. I always prefer exact match without prefixes or suffixes; however, I do have domains that rank at the top of google with these minor additions.

So, if the exact match domain is taken, and you are still excited about the niche; I would not feel bad at all about picking up a myplaystationcontroller.com domain.

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In my experience the first one should do better than the second, but there shouldn't be a big difference between the two.

I would prefer to put one hyphen in the main keyword, however, if it wasn't available e.g. playstation-controller.com

One hyphen makes little difference to google in my experience and your domain will exactly match your target keyword

when you build backlinks, you want to vary your keywords somewhat to make it look more natural but it's always a good idea to keep your primary keyword or keyword phrase in the anchor text.

so....

playstation controller
buy playstation controller
buy playstation controller online

all 3 of these have playstation controller in it. I think you'll be fine if you pick a domain that atleast has your keyword or phrase in it.

It can help but it isn't a slam dunk that you'll even rank on the first page for a particular term even if you have an exact match. The more competitive the niche the less likely you are to rank on that merit alone and vice versa.

You also want to be mindful of trademarks in your domain name. For example, using playstation in your domain is quite likely to result in a discussion with Sony's lawyers, not to mention may affiliate networks will ban you for this simply to do a little CYA for themselves.

In your game controllers example, you could go for gamecontrollerreview.com (still available grab it quick) or something like that. Then create articles and build links that target related long tail terms, such as "BrandName ModelName Game Controller Review" or "Best Video Game Controllers". You will gradually build authority for the primary term "Game Controllers" and you'll be getting traffic for 100's, if not thousands, of keywords. (hint: in the right niche this strategy will make you $100 a day )

Real simple....take the exact match domain whenever you can get it. That doesn't mean you can't rank for the same term with another domain but it is more difficult, takes more time, and more backlinks than the EMD.

when it comes to development, i always say...

" the domain doesnt make or break your business, but it sure does help "

so if you can get an exact match keyword domain (1-3 keywords max in com/net/org) that is great

if not, try to come up with the next best thing... be creative

using experience ... for your first domain it will be more 20% effective then second one..

From what I've seen, an exact domain name (.com) match to the keyword being searched adds significant SEO value

Prefer first one because domain with exact keyword will easy to remember from users point of view..

The first one playstationcontroller.com suits your keyword perfectly.