A Sony patent application reveals a very neat implementation of the PSP. Imagine a camera-enabled car you can drive around...through an augmented reality race course.
We assume the car is controlled over the PSP's Wi-Fi connection. The user steers by seeing what the car sees, with the PSP's display showing the car's POV webcam feed. This video feed could be recorded, making for a kind of ultimate upskirt device.
But in addition to all this fun stuff, Sony hints at racing games with "augmented reality zones." In other words, software could superimpose/replace objects in the video feed, adding a little arcade action to the toy car. Who knows if the design will ever see the light of day, but I really love the idea. [Siliconera via Joystiq]