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Labo has a lot of potential if Nintendo keeps supporting it, and it isn't one of their hundreds of pet peripheral projects that go the way of the dodo -- and videos like the below prove it.
Developer Rayark just gave us a quick clip of Deemo in action with Labo piano support, and surprise, it looks like a working demo. Remember that Guitar Hero device that you'd strap onto your DS? It's like that, but it a little more elegant.
It's not quite officially supported yet as the studio is currently seeing if it's possible, but it's still fun to watch and marvel at all the same.