http://www.businessweek.com/technolo...580_page_2.htm
The whole interview is pretty interesting, but here are a few highlights..
Originally Posted by Miyamoto
We tested all kinds of technologies for the controller. We made working prototypes and tested them on games to see how they might be used. We actually were ready to show off the controller at E3 [Electronic Entertainment Expo, the annual video game conference in Los Angeles] in 2005, but we had some troubleshooting to do. So we decided not to reveal the controller and instead we displayed just the console.
Was making a console that would cost $250 or less the goal from the start?
Miyamoto: Originally, I wanted a machine that would cost $100. My idea was to spend nothing on the console technology so all the money could be spent on improving the interface and software. If we hadn't used NAND flash memory [to store data such as games and photos] and other pricey parts, we might have succeeded.
To answer your questions, yes, we set out to design a console that would sell for less than 25,000 yen ($211). It was a tall hurdle. But unless you start off with a target, you can't control costs and you'll inevitably lose money. Also, we thought a low-cost console would make moms happy.
Were there any nongame controllers that you looked to for inspiration?
Ashida: Miyamoto brought in cell phones and car navigation remote controllers and tried them, too. We made one that resembled a cell phone. Another one had an analog stick on top and digital interface on bottom.
The DS handheld gaming console, released in 2004, is now the hottest-selling portable video game machine. Did the success of the DS influence your design decisions?
Ashida: The DS had a huge impact on the Wii's design. We had the DS on our minds as we worked on the Wii. We thought about copying the DS's touch-panel interface and even came up with a prototype. But then we rejected the idea, since the portable console and the living-room console would have been exactly the same.
What were the biggest technical challenges in the controller redesign?
Ashida: The controller's wireless technology. It took two years.
Miyamoto: Getting the infrared pointer to work took more than a year. It worked just fine in the ideal environment. But bright lights and sunlight interfered with its accuracy. And we had to test it in rooms of all sizes. The final version wasn't finished until this summer.
We also had reservations about adding a sensor bar to boost the pointer's precision, since we wanted to make the setup as simple as possible. Combining the different technologies to mimic 3D space recognition took time. By the end of 2005, it was ready for mass production. But we were making adjustments up to the last minute.

