Reference coordinates in a coordinate system and designated coordinates in the coordinate system based on coordinate information outputted by a pointing device are set. A distance and direction between the reference coordinates and the designated coordinates are calculated. When the distance has a value smaller than a predetermined threshold value, the distance is converted into a game parameter using a first conversion function is determined. On the other hand, when the distance has a value greater than the predetermined threshold value, the distance is converted into a game parameter using a second conversion function for converting the distance into a value greater than a value into which the distance is converted using the first conversion function. The game is processed using the direction and the game parameter.