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The wii controller guesses how you’re using it right now. There are accelerometers inside (essentially ball bearings that can sense tilt and thrust) and the IR to sense direction. When you’re playing baseball, for example, you’ll notice there’s a certain point in your swing velocity where the CPU takes over. It assumes you’ve swung and completes the swing for you. With this, you’d completely follow through your swing and it’d be able to detect the actual velocity of your swing.
Furthermore, it’s much more accurately mapped on a 3D plane. So, for example, you could stab someone in front of you than immediately stab someone behind you and it wont matter that you’re not pointing at the sensor on top of your TV.
It’s what the Wii should have been from the start. I suspect, in fact, that it was what the wii was going to be from the start. If you watch a lot of the tech videos from the few years before the Wii’s launch, they were doing stuff like this. But then it seems they backed off. Whether the technology wasn’t ready or they realized they could make more money if they released it later, who knows.