Allright everybody, it's just a patent application (US patent number 20080084385 in case you're interested). It's nowhere near a finalized product.

That being said, and having not (yet) read the patent application, the thing does look interesting. For those who are doubtful about reaching the buttons, try holding a pen. You don't have to strap the thing around your palm, but rather around your fingers. So it could work reasonably well, though it won't include an IR pointer.
Anyway, the patent application was filed in October 6th, 2006, a year and a half ago, and we've not yet seen anything of the device, so it might just be a patent that's used to curb the competition. And in any event, the real focus of the patent application is (from what could gather at a quick glance) to make a wireless mouse substitute, not a real gaming controller.

I'd have to try this before I could judge it, but it looks like it might be cool.

@IllegalPaladin:

Yes there was. Click on the second link in the original post. Scroll down to the second figure and that one is it. It does look similar.

Anyways this thing looks weird, but interesting nonetheless.

looks ugly to me

well that would kill the only thing the wii has going for it, motion controls. Well theres still the matter of price too.

This looks like it might be good, might not, but the thing I still don't get about either this spec or the previous one is how the hell are they going to control the thing. The analog stick is at the top, surrounded by the four buttons? So how will you, you know, steer and shoot at the same time?

The reason for the nunchuck is to allow you to press a button and have an analog control for different hands, the way it's done with normal controllers. You get rid of the nunchuck, you have to figure out a way to solve that issue. Really, it's not even that hard to do with this model--if it's held like a gun handle, put buttons along the side for pressing by different fingers with the analog stick at the top for the thumb.

Really, Microsoft continues to show they just don't get the ergonomics involved in physically playing video games. If this model comes out like this, it's going to be just as disastrous as the original XBox controller was for them.

looks really weird, and i think, it won't attract casuals as the wii does, but if it's so different than the wii remote, microsoft's own creation, then it's ok.....

 You can't be serious.  Even I said in this thread that this device seems intriguing but to even consider it a possible Wii killer is completely ludicrous.

As far as taking out the "only thing the wii has going for it, motion controls." 

1.  It's not bundled so close to 20 million 360s are out there without it and we'll probably hit closer to 25 before release considering that this still hasn't been officially announced or confirmed.

2.  Even if it suddenly were bundled in and patches were released to update several previous notable games it still isn't the "default controller" so game support would be extremely limited.

 And as far as "the matter of price" is concerned Wii is still beating the 360 in others consistently (where demand isn't as crazy as it is in NA) while the 360 is the cheaper console there.  At this point do you honestly think if the 360 dropped below the Wii's price in NA it would start outselling it here considering it's still supply constrained in NA?

I think this device looks VERY different to what the Wii does. Microsoft look to be copying the Wii with the 360-mote, but this device was filed with the patent office very early on (after the Wii was revealed, but before it was released).

Its better Microsoft release this controller for the 360 so that when the next xbox comes out they'll have the system well tested.