In a recent interview with Kotaku president of Nintendo of America Reggie Fils-Aime passed a few choice comments on some of E3's big developments, most notably Microsoft's Project Natal and Sony's 'Wand' controller:
We have been very familiar with that technology. have personally seen a lot of iterations of similar technology. Our first reaction is that it is ironic that, three or four years ago, the prevailing industry opinion was that prettier pictures or more horsepower were the waves of the future. And now it's clear from both of our competitors that physical activity in gaming is the wave of the future. It's also ironic that, for Nintendo, the future is here. The future is now.
Reggie was also asked if Nintendo was exploring similar 'controller-less' technology like Project Natal:
We've looked at similar technology and will continue to look at other technology for the future. What's different, I think, for us, is that the experience is what drives us down a particular path, not simply how nifty the technology is… When we looked at this technology and other technology, we decided that the best way to drive immersion and precision as well as creating an environment for publishers to flourish was the Wii remote coupled with the nunchuck.
Clearly Microsoft's new interface is worth keeping an eye on, but Reggie has a point; some of the tech demos of Natal have displayed worrying glitches and as cool as it might be to control a game without using any kind of physical controller, if little inconsistencies keep appearing then your enjoyment is likely to vanish too.