In this video Simon Wynda (I’m guessing at the spelling) gives a Core Tools for Augmented Reality demo. This demo was featured at the Microsoft Research Cambridge Lab on May 6th.
Simon demonstrates a geospatial AR application that recognizes its location from images and GPS data. Location notes are annotated in the view in one example.
The second part of the video he shows a hide-and-seek game utilizing AR. The view in the camera shows a cascade of bubbles floating by that a child would follow to a treasure chest. Simon demonstrates how even away from the chest, the bubbles float in the correct direction. Not a breakthrough by any means, but I like the direction of their creative thinking to make an interesting application.
This idea could be expanded into an adult hide-and-seek finding clues throughout a metropolitan area leading to a big event. Prospective attendees could answer questions along the way at certain locations related to the event. Would be a great viral marketing campaign.