Invizimals is an augmented reality game for one or more PSPs. It uses a number of unique mechanics.

It’s a “collectible” Pokemon-like game, but rather than having to pay for cards, you collect creatures by wandering around using the attached camera trying to “find” the creatures hidden in the real world (hint: find the right color). You have to keep your camera on the creature once you’ve found it, and then capture it using the appropriate method.

Once you have creatures, you can level them, and fight other players with them. Fighting is real time, and may involve magic, claws, or weapons, and you can introduce special effects using various gestures, such as lightning, meteors, etc.

Pretty nifty.

In other news, another AR game company, Ogmento, just received $3.5 million in investment funding. (source)