A vertical gyroscope is adapted for use as a pointing device for controlling the position of a cursor on the display of a computer. A motor at the core of the gyroscope is suspended by two pairs of orthogonal gimbals from a hand-held controller device and nominally oriented with its spin axis vertical by a pendulous device. Electro-optical shaft angle encoders sense the orientation of a hand-held controller device as it is manipulated by a user and the resulting electrical output is converted into a format usable by a computer to control the movement of a cursor on the screen of the computer display. For additional ease of use, the bottom of the controller is rounded so that the controller can be pointing while sitting on a surface. A third input is provided by providing a horizontal gyroscope within the pointing device. The third rotational signal can be used to either rotate a displayed object or to display or simulate a third dimension.