This is a great piece of technology. If you have a wizbang new Smart TV you don't need it. However for non-smart tv's this is an essential piece of hardware. You can watch YouTube in HD on your TV.
However from my tests it is clear that with the accelerometer you can use it to make a light gun or a Nintendo Wii controller. Here is a photo of the VR engine running on my TV.
A very impressive idea by Google. You have to have WiFi for it to work, which could get expensive so a bluetooth option would be a good idea.
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