Sony's Eyepet looked like a promising entry in the "augmented reality" category! It uses a camera to make it look like a virtual pet is actually in your living room that you can interact with!
 

 




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File: IMG_3508.CR2
File size: 29.9MB
Camera Model: Canon EOS 5D Mark II
Firmware: Firmware Version 1.1.0
Owner: Lens Rentals
Date/Time: 2009:08:23 11:03:02
Shutter speed: 1/60 sec
Aperture: 4
Exposure mode: Av
Exposure compensation: +1
Flash: Off
Metering mode: Evaluative
Drive mode: Continuous: frame 1
ISO: 3200
Lens: 17 to 40mm
Focal length: 40mm
AF mode: One-shot AF
Image size: 5616 x 3744
Image quality: Raw
White balance: Auto
Color space: sRGB
Sharpness level: 3