This looks like the most uncomfortable thing in the world to hold. It looks expensive, gimmicky, and prone to breaking.
By the time they launch this, Microsoft will be announcing new firmware for Kinect with even more extreme fidelity than they have now, and Sony will start hyping their next console.
Add to that the lackluster sales of the (gimmicky, low battery life) 3DS, and I'd say Nintendo just jumped on the fail whale.