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So after watching some highlights of E3, I couldn't help but to think where this controller for the 360 might take the controllerist realm. Considering all the cool things being done with a Wii remote, imagine what some creative minds are going to do with this.
http://cnettv.cnet.com/2001-1_53-50072465.html
They really did an awesome job on that camera.
However it won't be much helpful for DJing for the same reasons as "WiiJing" doesn't work very intuitive and well.
WiiJing just uses the buttons on a WiiMote because the IR-camera and the accelorometer are too complex to use them for normal DJ-tasks like putting a slider to the top or turning a knob.
The Microsoft-camera thing would be even more troublesome because it is even more complex to define actions it reacts too.
A club environment usually has bad or often changing light-conditions which would disrupt the camera or think about someone getting in the way and therefore ruining your mix.
Also you'd have to crate an awesome mapping so you don't look like a total jerk while doing that thing.
We DJs will always want to at least touch something physical.
For gaming this looks great however if the devs take their time to code the controls properly.
Dj'ing will be a crazy ass dance form........
I don't think it would be much of a replacement, but it could definitely add to the show. I would probably use it as some sort of visual effect that would have a similar FX mapping. If a DJ's large movements were affecting the music directly and visually, it would have the same pull as Blue Man Group and similar acts.