A game controller includes an image-capturing section, and outputs, as
control data, a captured image itself or a result of performing a
predetermined operation on the captured image. Using the control data
obtained from the game controller, distance data regarding the distance
between the game controller and the imaging target is calculated. A
predetermined game process is performed on a virtual game world based on
the calculated distance data. Then, the virtual game world after the game
process is displayed as an image on a display device.