GamesRadar.com has conducted an interview with Jim Merrick, Nintendo of Europe's Managing Director of Sales and Marketing. Merrick is questioned about the recently announced Project Revolution controller. Check out the full interview here or an excerpt below.
Q: How is movement of the controller detected?

Merrick: We use Bluetooth technology to communicate between the controller and what we call a 'sensor bar', which has two little sensors on it that are maybe a foot apart. These sensors can be detached from the bar and they can be above the TV or below the TV - it doesn't really matter. There's really no set-up other than just putting the bar by the TV. There's no calibration for size or type of TV or anything like that.