Nyko's director of marketing, Chris Arbogast, has stated that the company doesn't see controllers going the way of the dinosaur any time soon and that it will be quite a while before peripherals like Project Natal become a mainstay.

"People in the casual market like feeling something physical to keep your hands aligned," he told Joystiq. "When you grab the Wiimote and swing it, it feels like you're swinging a baseball bat, versus pantomiming swinging a bat.

"I think that if you take all [the controllers] away and you're just pantomiming everything, there may be some disconnect with realism there."

He does admit that if Project Natal becomes a massive hit, the company will have to rethink things a bit.

"We'll have to think of other ways we can accessorize and augment the players' experience," he added. "Not with a controller anymore, but with other things to add to that camera functionality. It could be a whole new avenue of business that opens up for us because we'll be forced to challenge ourselves."

More through the link.