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1 - As mentioned before, too expensive. People without a console would still pick up a Wii instead.

2 - We still have yet to see how this would function with a standard game, like Halo. Do you point your hand like a gun and say BANG to shoot?

3 - It's really more of an eyetoy type function than a truly functional control system. What happens when you need to run? Backpeddle? Strafe?

Overall, it will only apply to select few games, not draw in the casual crowd its aimed at, and be ignored by the "core game" developers.