This has been a recent little obsession of mine. A friend told me about augmented reality being implemented into the iphone, and after a little research I found that web cams are being used for the same purpose. Through some impressive coding, webcams can now recognize symbols and project images on the video feed of the camera. As of now it doesn't seem to serve much of a purpose other than an emerging trend, but this certainly seems it's on the verge of a new category of media and advertising. If you have a webcam and would like to give it a try, a good example is GE's ecomagination site.
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