It matters for localized multiplayer games. Granted, most of these fall into the "party game" category, but it does include games like Smash Bros and Mario Kart, which are staples in every Wii owner's library.

That was part of the reason for the success of the Wii.

Also worked well for Rock Band, which was much better as a party game than Guitar Hero.

Mario Kart is one of the best motion controlled games on the system.  Granted, it does support traditional control schemes, but most people that haven't been playing Mario Kart for years use the wheel (as do I, since it's more fun).

Another biggie is Mario & Sonic at the Summer/Winter Olympic Games.  The first one sold 7.6 million while the second sits at 3.3 million. 

I'm sorry for my ignorance - maybe this will be a deal breaker for a lot of people.  Though I've read other people complaining about how much space is required.  From my experience most of the simultaneous 4 player games on the Wii are done sitting down and use more buttons than motion.

Well when i played Wii Sports, we played with about 3 and sometimes 4 people. and i mean thats really important. but we generally took turns to play the games, like bowling, so wern't similtaneously using the sensor. so maybe it wont matter that much. 

but i cant understand this. M$ have shown in their E3 demos and video demos more than 2 people playing Kinect???

Depends on the game, really.  Tennis requires a decent amount of space, while Mario Kart basically makes you stick your hands out a foot in front of you and that's it.  You may bump into people if you physically lean into a curve, but you can use that to mess up their driving.  =D

I can't think of any footage showing more than two people playing at a time aside from their concept trailers from E309.  Even at that time, the on stage demos consisted of only 1-2 players.

Could be a problem for Kinect I guess, though any game that has you move around might want two players max by design anyway. No need to crash the livingroom!

And I don't think it will be a problem for Move either. You still have four player options on the DS3, and I imagine that most Move games that would do well with four player multiplayer are games that don't use a Nav controller anyway.

I don't think it's gonna be an issue to be honest.

Beyond the games already mentioned and others,Goldeneye and Conduit 2 will all have 4 person splitscreen local multiplayer necessitating nunchuk (as well as Black Ops? Not sure about that one, if it has 4 or just 2 player local MP). And these will be setting the standard for such WIi games moving forward.

I didnt watch all of M$'s press conference, but their recent trailer did show 3 teens playing this dance game. and we've seen 4 people playing ricochet (you know the really bad demo with the woman, the bloke and the 2 boys). theres probabily a few more demos that i've missed. so i still dont understand this agument when M$ have shown more than 2 peope using Kinect ??

Whats DS3? And what's "Nav" (I think) that I've heard thrown around in the same context.

DS3 is the Dualshock 3, the standard PS3 controller, and the Nav is the Navigation controller, that thing you can buy for the Move that acts like the Nunchuk on the Wii.