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Cut out the middleman

From Kokoro, via BoingBoing: a video game (a Square Enix Dragon Quest title no less) that consists of a sword - the input device - and a small gadget you plug into your TV. No console involved.

Weird input devices are cool. I wonder if this device will be repurposed like the Nintendo PowerGlove.

I also wonder if potentially there's a viable business model in console-less video games on a larger scale. Hardware would have to get cheaper, and you wouldn't be able to make cutting edge titles, technically. You'd have to deal with the input device. It'd be more like a toy than a video game, and you couldn't piggyback on the console's brand, but that's just marketing. Oh well, this might be interesting for a gimmick here or there.