Knit Happens: Nintendo once tried to combine gaming and knitting

A long time ago, when Nintendo was merely a company that made video games and wasn't in the nostalgia-destroying business, it unveiled a slew of accessories to appeal to new demographics. One such device, the Nintendo Knitting Machine, was recently unearthed by Kotaku, and it's mind-boggling that this thing almost really existed. It appears to be some sort of long thread-board that connects to your Nintendo controller and uses the sounds and movements of the game to create patterns on a sweater…maybe? I've been staring at this thing for a while and I don't really understand how it works. Plus, would Link wear a sweater? I THINK NOT (unless it's in fan fiction)!

Here's the original poster: