Disclosed herein is a data input device and method of operating the same. In one embodiment, a data input device comprises a plurality of inertial sensor units, one or more touch input devices, a microcontroller configured to collect sensor data from the inertial sensors and the one or more touch input devices and process the sensor data to generate processed sensor data, and a wireless transceiver configured to transmit the processed sensor data to a host computer. In another embodiment, a method comprises receiving sensor data from a handheld device; calculating hand movement characteristics in three dimensional space based on the sensor data; calculating the position and orientation of the components of the handheld device; identifying positions and movements of one or more fingers of a user manipulating the handheld device; identifying a gesture from the positions and movements of one or more fingers of a user manipulating the handheld device; identifying a recognized gesture corresponding to the identified gesture; and dispatching an event notifying the gesture to an application.