New Research Reveals Strong Motion Sensing Influence on Purchases of Gaming Consoles and Large-Screen Displays

With the holiday shopping season in full swing, gaming consoles are once again atop "wish lists" for 2007. New research commissioned by InterSense Inc. reveals the Nintendo Wii is first in the hearts of potential game console buyers this holiday season -- ahead of the Sony Playstation 3 and Microsoft Xbox 360 -- in large part due to the system's integrated motion sensing technology. Providing a more immersive, life-like gaming experience, "motion sensing" enables players to dynamically interact with a video game by using their hands or a hand-held device in a more natural way, such as by punching, fighting with a sword, swinging a bat or throwing a ball.

"It's clear that motion sensing technology has played a key role in the tremendous success to date of the Nintendo Wii," stated T.C. Browne, CEO of InterSense Inc. "We are at the early stages of the integration of motion sensing capabilities into gaming and these survey results demonstrate the market is primed and ready for the next stage in the evolution of gaming -- one in which games will capture not only a player's motion, but also his or her effort, speed, directionality and skill-based 'play action' -- ultimately bringing the competitive gaming experience much closer to capturing live game reality."

Highlights of the survey include:

-- Cross-platform ownership is growing. Consumers are not merely
replacing old systems with a newer console, but are instead becoming multi-
platform owners. In fact, 45% of survey respondents said they planned to
own more than one console over the next year, compared with only 39% who do
so now, indicating that acquiring a second platform is becoming a bigger
console sales driver than acquiring a first one.

-- Motion sensing technology is a key factor in decision making. While
the Nintendo Wii is the only console that currently features motion sensing
technology, the survey revealed motion sensing is an important
consideration for consumers regardless of the platform they planned to
purchase. In fact, half of all survey respondents considering the purchase
of either a PS3 or an Xbox 360 indicated the inclusion of dynamic motion
sensing technology would make them more likely to purchase a gaming
console.

-- Screen size matters. The survey confirmed that owners of large-screen
displays (40" or larger) are most likely to have plans to purchase any
given gaming console. Interestingly, the Nintendo Wii was the top gaming
console choice among owners of ultra-large screen televisions (60" or
larger).

"The Nintendo Wii has clearly closed the gap on the Microsoft Xbox 360, in large part due to the integration of first-generation motion sensing technology that provides an intuitive gaming experience," stated Sean Wargo, Principal Consultant and President of The Market Sage. "While the Wii has only been on the market for half the time of the Xbox 360, shipments by the end of 2007 are expected to approach 20 million worldwide -- surpassing those of the Xbox 360 at nearly 17 million units."

Wargo continued, "There appears to be a link between the big screen experience and the motion sensing experience. This is evidenced by big screen owners' greater interest in the Nintendo Wii with its motion capabilities, versus the Sony Playstation 3 and Microsoft Xbox 360 with high definition. Surprisingly, the research suggests that motion sensing capabilities may be more important than high-definition support among big screen owners."

Commissioned by InterSense Inc., The Market Sage and Simon Management Group, the survey was conducted October 18-21, 2007, and included a random sampling of 1,000 U.S. households.

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