It looks like the Wiimote is going to be fully integrated into the game; what looks like a pointer can be seen in the battle shots. The article promises that the game will detect the sword strokes made by the player, with the direction of swing apparently matching the players action.
How well the first person swordplay works could well be the critical factor in the success of this game.
The game's 3 companions are also pictured, choose from soldier Dean, fatherly Boudo, or monk Seteia, who appears to have skipped on the brown cloth tunic and gone straight for the traditional pink bodice and leather wrist strap. We know who we'd choose.
Dragon Quest Swords is penciled in for a July 12 release (Japan).
[Via 1P Start]