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First, the seniors are USING a video game system which they would normally never do. I have always stated that the interface to existing systems has always been their biggest impedement to mass audiences. Non-gamers see a control pad as overcomplicated due to all the buttons and its use relegated to kids their grandkids age. With a unique, simple interface a game system's target market will be opened to EVERYONE. The Wii is a step in the right direction, but it too is overcomplicated with all those buttons. Notice how simple the dance pad is and how easy it is to see and read; totally non-intimidating to a non-gamer who, with a normal system, feels like they'll get lost and stuck in a complex maze of controls and menus.
Second, the senior's market is HUGE and growing. Tap that market and you can give hard core gamer systems away for free and still make a tidy sum. Even better, seniors, more than any other age group, have the money to spend on more exotic systems and controls.
Third, the ability of games to make mundane or painful tasks bearable or enjoyable is an untapped strength. Exercise is usually relegated to a stationary bike that gets used for a week, becomes a clothes hanger, then gets broken out before someone needs to see the doctor and get weighed. Make the task challenging and enjoyable through a video game that doesn't intimidate non-gamers and you've both made a profit and helped people out.
Rehab is definitely a spot for these types of games and simplified interfaces. Giving someone a challenge and reward often keeps their mind off the pain and lets them focus on beating the game (which in reality is them overcoming their pain).