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Here's one possibility for a transforming controller. Instead of selling separate "remotes" and "nunchucks," they could sell one standardized remote with configurable buttons. So rather than buying two complementary components like on Wii (with the nunchuck being useless on its own), you buy two identical remotes that can either be used by two players separately or synced together and used one in each hand.

If Sony's making one of these, I bet also that it'll run together with the PS Eye somehow. That gives the possibility of absolute position-sensing, which would be a huge leap forward over the Wii.