This application currently runs on a dev kit for the Tegra, although one can imagine that games which merge camera usage with 3D application in unique and creative ways can't be too far off in the future.

The buildings, civilians and zombies only exist on the screen of the mobile phone, and the camera view changes accordingly as you point at different locations on the special map.

ARhrrrr! (Augmented Environments Lab)

The video above shows sound effects being procedurally generated. Looping sound effects coming from a waterfall or pool could be a thing of the past if this algorithm is ever implemented in 3D games.

More info here.