The guys from Georgia Tech Augmented Environments Lab (GVU Center) are working on an awesome augmented reality application for the iPhone. Augmented Reality (AR) is basically a technology that deals with the combination of the real-world and computer-generated data, in real time, and can be interactive.
In this AR Virtual Pet application for the iPhone, first a marker is placed on a surface, and then the iPhone’s camera is focused on the marker. Through the iPhone’s screen you then will see a 3D virtual pet pop up from the marker, as if the pet was on the surface where the maker was placed. Watch the video below for a demonstration, it’s pretty awesome.