Well, what I'm envisioning anyway is that since everyone's controller is synced to the camera by the TV, and everyone is getting their own personal head-tracking via the camera on the controller they're holding, each person sees their own illusion of 3D.  Since there obviously aren't really objects floating outside of the TV or deep within it, the interaction process for the game would remain the same for everybody.

It's all just about trickery of the eyes and brain and everyone would have their own sweet-spot view of the illusion as long as their own controller's camera is tracking where their head is relative to where the camera by the TV is.

Given that the DS used a new, more accessible control scheme and appealed to non-gamers, it wouldn't be suprising if Nintendo focus on 3D and augmented reality for Wii 2 given the direction of the DSi and 3DS.

While we're on the subject, I called the screen in the wiimote months ago too.....kind of.

Oh, i think you get tricked out. That's not possible. You know this 3D-illusion works, because on the TV a specific angle of a picture (or action) is shown. Just 1! It depends where the wii-mote or the head is positioned relative to the camera or TV. If 4 players stay in front of the TV, there is only one position from which the perspective is correct (in your video the position of the person and the displayed perspective are identical for obv reasons).

For the thing you described, you would need a 3DS-like parallel barriere with 4 sweep-spots and furthermore an automatic control of the sweep-spots, which could be possible, but that's in 20 years or later.

And this could be solved with controler display, today.

Wonderful.

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Look at you video at 3:10

http://www.youtube.com/watch?v=Jd3-eiid-Uw&feature=player_embedded

Here it happens that the one target in front would be outside of the screen, i mean the screen is to small to display the correct perspective. Suddenly the 3D-effect disappears, that's because the target is just shown half. Then the target disappears completely, the 3D-effect appears again because every target is completely shown again.

It's not wizardry in any sense.

3DS style 3D would be a boon for split screen multiplayer.  No more cheating by looking at your opponents screen.

I dont understand just yet how it could work for single screen mutliplayer.

but without any 3D effect. Actually this technique don't work for more than 1 person playing the game. The screen display a image in 2D updating in realtime using the perspective from a person. But it can't display a separated image for each person, unless if you use a 3D Tv with Glasses(which would make it not having any sense)

I said it before and I'll say it again: these rumors have become outright SILLY

Could Nintendo have found some (potentially forgotten) technique for providing an illusion of 3D using a standard TV? Possibly ...

Would head tracking be it? Absolutely not!

Nintendo has been consistent with providing an excellent local multiplayer experience with each of their home consoles and head tracking is a technique which only works with one person. The likelihood of Nintendo producing a system that focuses on head tracking is close to 0%.

Yeah, I do see how standard head tracking wouldn't work without multiple images being displayed.

Still, this could definitely explain what the individual controller screens are for.