I've been collaborated on and off with Nicholas Napp for years, including on a National Science Foundation grant for computer vision on mobile devices. He's extremely experienced in the world of traditional toys, as well as video games, and he's had a compelling dream of tying together motion sensors, smart phones, and a rich real-world game system to produce something magic. The gameplay uses precise location tracking and gestural control through a wand to give you an interface to cast spells that hurt or help other combatants in fights, or help you progress through adventures in other ways.
I love this sort of overlay of virtual layers on top of the physical world, and I believe Nick and his very talented creative collaborator Kevin Mowrer can execute on their vision. They're now on Kickstarter raising money to get started, so if you're intrigued, go check it out. I've donated $250 myself, and I can't wait to get my hands on an early wand.