blackbearnh writes "With the release of the 3.1 iPhone OS, application developers will finally be able to develop augmented reality (AR) apps. In other words, Terminator Vision is right around the corner. O'Reilly Media recently talked to Chetan Damani, one of the founders of Acrossair, about how they developed their new AR application, Nearest Tube, which displays the closest London Tube stations over a live video overlay on an iPhone 3GS. According to Damani, developing AR applications on the 3GS is dead easy, and the real trick will be developing good augmented reality apps. 'It's all about who's going to have the most amount of data and the most valid data. So there's the obvious types of apps which you're going to launch and those are the find me my nearest bar, find me my nearest event, find me the nearest tube stop, find me the nearest ATM. And those sorts of apps are all going to be around. But they're only going to be useful for when you're trying to look for things. So if we want to get users to use augmented reality a little bit more, we have to start introducing other bits of functionality, things like show me the offers available in a particular high street. Show me when I'm walking down a high street if there's a table available at a particular restaurant. And it's that sort of interactivity and providing that real-time data in this augmented reality view which is going to start getting people to use it a lot more rather than just for show me where the nearest area is.'"