"Software is doing vision and so, you know, imagine a game machine where you're just going to pick up the bat and swing it or the tennis racket and swing it", he said.
It appears many jumped on the comments as a direct relation to the Nintendo Wii remote. However, it appears that Gates was referring more toward video motion capture, probably on a far greater detail than the 360 camera or the Sony eye toy are capable of recognizing. Apparently, Gates wants you to swing an actual Tennis Racket or golf club, and not just some skinny little remote.