Koren said:You can, and it has been done (except that it was a retro-reflector ball, and there was a IR projector beside the wiimote under the TV). It works perfectly (and I'm currently trying to build one myself)
The fact is that there's the tech in Wiimote to do the same as Move. They decided to put the camera in the accessory, the beacon under the TV. Sony did the opposite.
I don't think there's a better tech, but rather different philosophies. I'm pretty sure Nintendo tried a lot of things, including Move-style possibilities (after all, that's the tech used in pro motion tracking!) and decided that they prefer limiting the motion tracking capabilities (Move is definitively a superior solution on this) to lay emphasis on pointing. It's easier to have a very good pointing with Wiimote than trying to infer it with gyroscopes/magnetometers. Besides, Nintendo seems to have had troubles finding reliable and cheap gyroscopes back in 2005.
I personnaly think that Wii strong point is the wiimote as a pointing device, but from a marketing point of view, and for more "casual" players, motion tracking is easier to present as a selling point.
The tech is similar, but the results are not.
The tech in the wiimote means that the camera can only see the sensor bar when the wiimote is pointing towards it. The PSeye can see the orb almost all of the time, no matter what direction the move is pointing in. Thats the key difference it seems.