The player is using two analog sticks to control movement and view and the trigger to shoot. I don't think that gun is anything other than a gamepad shaped like a gun. o.O
It may have some sorta angle/acceleration detection too, like SIXAXIS but I don't think it does anything more than that.
Edit: Looking at another video, it certianly can control your perspective with motion, SIXAXIS/WiiMote style but I don't see it using any sensors for pointing at the TV. It's just a gun shaped motion controller. It's not really a 'light gun' at all.