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Defining an Interactive Physical MMO For the iPhone
already-living-in-a-virtual-world writes "On his blog, mispeled writes about a new type of game he'd like to see for the iPhone. It's interesting stuff: '... the integration of a true gaming platform with the capabilities of a phone is unique, at least for the quality of the gaming experience offered. For all intents and purposes, the iPhone is a new system. And new systems demand that new gameplay mechanics be explored. For a long time I've been a fan of the MMORPG genre, and the iPhone offers several MMO-type games, especially those in the facebook, social-networking style. However, what I've yet to see is a game that takes advantage of the iPhone's location services, the GPS-like capability of the phone. Tons of applications use it, but no games, as far as I've seen. Why not? Motion sensing is all the rage on the consoles — the Wii popularized it, but now Microsoft and Sony are jumping on the bandwagon. But the iPhone, because it's portable, offers something more. And I want those offerings taken advantage of. I want to play an MMO that knows where I am and links my physical location to a virtual location. I want to create a game that gives the planet Earth a virtual overlay, interactable via a mobile (read: the iPhone) interface.'"
I have seen what can happen to people that play MMORPGs. It's not natural. They drink crazy amounts of nasty beer and press the same key combo for 12 hours non stop. If these people are allowed to take this with them where ever they go, their lives will go from being 90% useless to 100% useless. SiteList.ca
Sounds like you're describing Parallel Kingdom. It is an MMORPG that uses the iPhone's GPS/location services to place the virtual world on top of the real world. There is an version Android too.