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SpartanFX said:
but why is there a camera on the controlled?

 

look at the patent text or my previous post they use a mix of ultrasoic and visual tracking for the position identification. the patent tells taht they will visually track the spherical objects in the picture of any camera (b/w, color or infrared) which will give them a  line on which the position of teh controller will be in room, plus they aditionally use ultrasonic tracking to calculate the distance to the camera. which would give them a (exact) position in 3d space (exact will depend on the resolution of the camera/visual tracking as well as the resolution of ultrasonic distance tracking).

the patent text also explicitely mentions that these spheres don't have to be exact spheres so these big orbs might look quite a bit different in the final product if they will ever make one.