A novel 3D Wiimote localization scheme with no channel constraints has been proposed for smart living or computer animation applications. This scheme utilizes two Wiimotes for performing stereo range finding and an Arduino- based IR LED switching for breaking the constraint on available channels. By controlling the switching of IR LED units sequentially, the equivalent available channels can be extended with a trade off in system bandwidth. This Wiimote-based 3D localization system can detect more IR LEDs than the number of original channels and each IR LED can be identified correctly even if it passes through a shelter. A testing system is also setup for evaluating the performance on the 3D localization and IR LED switching control. The preliminary results indicate that the position of IR LEDs can be accurately detected and the system can identify IR LEDs without channel constraints. This novel localization system is expected to have a great potential on applications such as mobile robots monitoring or human motion capture for animations.