found this on RockPaperShotgun and... well the technology seems sound.
It doesnt use Gyros or infrared or anything like that. It uses an electromagnetic field, allowing it to follow the two controllers to the millimetre and the degree.
And it's impressed some big names including Valve and the legend that is John Carmack.
Mo' info
http://www.rockpapershotgun.com/2010/01/08/motion-tracking-controller-for-pc/#more-23621It wont revolutionise the PC, but it's kinda cool.