It can perform motion controls without it... but it can't perform as a pointer without the IR sensor.
Wii Sports doesn't use the IR sensor (+sensor bar) except in the menu screens.
The new add on Wii motion plus does need the IR sensor though..... I think it needs you to point at the screen so it can figure out where the Wiimote is in space... and then it will remember it's starting position and figure motions from there.








