Freeverse has released the Fairy Trails app
(http://freeverse.com/fairytrails), an augmented reality game for the
iPhone and iPod touch, leveraging the latest technology in iPhone OS
3.1, including camera and compass access. It’s available for US$1.99
at the Apple App Store
(http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=331011110&mt=8).

Here’s how the game is described: “Shake the device to power the
detector and then scan your surroundings for magical creatures. Fairy
Trails uses the camera and compass of iPhone 3GS to merge the real
world and game world in spectacular ways. For iPod touch users, a
stunning forest setting is rendered for the fairies to inhabit.”