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HappySqurriel said:

Looking at the 3DS it is fairly clear that augmented reality is on Nintendo's mind, and one of the biggest things missing from most of the rumours is any indication of Nintendo bluring the line between digital and physical space. In fact, for years it has been clear that Nintendo wants to expand videogames into the physical world more and more; after all, that is (effectively) what Wii Party is.

It would seem to me that, while we should look for improvements in the Wiimote or controller in general, the advancement Nintendo will be pushing is probably more conceptually complicated than a widget on a controller. Certainly, it might involve widgets on controllers (like cameras on controllers or even something like an LCD screen) but it is much more likely that these are just components of the larger concept. To understand what I mean consider the motion controller in the 3DS, on its own it is only a widget but it is an essential component to producing the AR games in the 3DS.

I like your reasoning. Fits in with what I mentioned perfectly well. Except, a wiimote with a large screen on it is not usable like a wiimote now. This is why I think the wiimote/nunchuk will simply be utilized as an option just as devs can currently make games that use wiimote, classic, or even a gamecube controller. Difference is the new controller will be in the box along with a wiimote. Both will be standard to ensure every owner has one. Of course the existing controllers will work as well.

The new controller, with dual analog and touch/3D screen could very well have motion capabilities as well. This would be good for headtracking and various other games as well.