This AR (Augmented Reality) stuff is pretty damn sweet. Smartphone users probably all know the Dutch-made app Layar, which enhances the area around you into a live billboard of various information, just by looking around with your phone.
Apart from “useful” mobile apps like Layar, there are also inventive game developers that use the concept of Augmented Reality to create very cool games.
Here’s a list of the seven best Augmented Reality mobile games I found on the web.
Contents
1 Paranormal Activity: Sanctuary (iPhone/iPod Touch)
Few are aware of the demonic forces forever trying to break through into our world. But you are a demonologist, an expert in occult secrets with the knowledge and power to stem the tide of evil spirits attempting to corrupt the minds of humanity.
In Paranormal Activity: Sanctuary you will investigate paranormal phenomena to identify hot spots of demonic activity called hell holes, then use your arcane powers to exorcise the evil spirits and create sanctuaries that protect against further attacks. But beware, if you let down your guard you risk becoming possessed by dark spirits and turning against your former allies.
2 AR Defender (iPhone/iPod Touch)
ARDefender is an Augmented Reality Game, involving a tower, various weapons and nasty opponents bugging you on your desk.
Simply move your phone to target the enemies, it’s magical! The game uses your camera phone and a piece a paper that you printed. Discover this revolutionary gameplay on several Smartphones.
3 AR! Pirates (Nokia)
Protect the Captain’s Treasure with your life! Shoot the marauding boats out of the water before they reach the island!
Augmented Reality game for S60 Smart Phones, created by Optricks Media.
4 ARBasketball (iPhone/iPod Touch-only)
Now everything you need to play basketball is your iPhone and a small piece of paper. ARBasketball shows augmented reality technology at its best.
Print the marker from http://simiotica.com/arb_marker.pdf and point your phone’s camera at it. You’ll see the hoop on the marker’s place. Throw the ball using swipe gesture and score points. Due to augmented reality technology you’ll forget that the ball and the hoop are not real and will plunge into the game! Of course you could buy a real hoop but would it be so cool? 
5. Sky Siege 3D (iPhone/iPod Touch)
Experience a full on Aerial Assault in Stereoscopic 3D as virtual helicopters come at you from all angles. Choose a spectacular 360 degree Virtual Environment or your own office! Fly a virtual RC helicopter around the room in Augmented Reality!
6. ARSoccer (iPhone/iPod Touch)
Using your own feet to kick through the camera, you can now play a virtual juggling game with any iPhone or new iPod Touch.
7 Star Wars Arcade: Falcon Gunner (iPhone/iPod Touch)
AR MODE BRINGS THE FIGHT TO YOUR LIVING ROOM: Using your phone’s camera, gyroscope/compass and accelerometer, Falcon Gunner turns your earthly surroundings into epic space battles and lets you control the action by steering your body in physical space. It’s like nothing you’ve ever seen.