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I think Nintendo is releasing this in response to the rumored motion controllers from Sony and Microsoft. They don't want to be out done if their motion controlls promise even more precision than the Wii-motes.

If you didn't know the Wii is NOT capable of knowing the absolute position of the Wii-mote, it only can know the relative position of it (unless when using the IR pointer). That is why we haven't had any 1:1 motion control games on the Wii.

I really dislike add-ons and I assume so does the general consumer. Nintendo ought to sell this for NO more than 10 bucks for not having this precision in the wii-mote in the first place. But I doubt that will happen.

This does bring up some interesting questions such as what games specifically will be using it, will it become standard, will be a pack-in with some games (Zelda maybe?), and what will be the cost?