Titled ARhrrr (geddit?), the game is a zombie shooter in which a flat tabletop map produces a cityscape seen on the handheld (in this case a prototype device from Nvidia). The city's populated with zombies, the handheld can be moved around at any angle and the overlayed city rotates accordingly. The idea behind the demo is that players are controlling a helicopter flying above the outbreak and can shoot zombies by tapping the screen. It's limited, but nonetheless really cool.
We've popped the demo footage after the break to rock your non-augmented reality. It's pretty impressive. So, what implimentations of AR on handhelds would you like to see?