So I'm not sure how many people out there have read Daemon
by Daniel Suarez but this new gaming App for the iPhone from Finnish Developer Grey Area is similar enough to scare the bejesus out of me. It basically creates a gaming world based on your current city, using a combination of GPS and Augmented Reality. It even populates it with enemies and quests and allows for a brand of open world faction based PvP that has you hunting down other people in the real world.
From Massively: "Gameplay consists of exploring, hunting down rogue spirits, and obtaining new spells as you level. Casting spells is accomplished by drawing rune-like shapes on the iPhone's screen, and players can also join one of two factions and battle other players in the same area of the game world."
This could mark the next step in 'Social Gaming' if it succeeds, and really an evolution of how immersed we're willing to be in a gaming world period.