PlayStation Move Teardown

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The components of the light assembly from left to right: lens, LED, heat sink (!?), housing bracket.
As LEDs get warmer, their brightness decreases. Having a heat sink in the LED assembly not only keeps the LEDs at the optimal operating temperature, but also increases the longevity of the diodes.
The clear plastic lens on the far left helps diffuse the light from the LEDs to light up the orb uniformly.
The LEDs in the end of the motion controller are capable of 24-bit color resolution.
For those who care: 24 bit color = 2²⁴ different colors. That's over 16 million different colors!

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