The game is called Re-Volt, and it blends Quake-style graphics with iPhone's touchscreen and motion-sensing capabilities, to stunning effect.
"I got hands on with it tonight at the show. You tilt the iPhone back and forward to move your character forward, and left and right to strafe. Shooting is automatic, although you can tap the screen to auto-aim at an enemy."
"The touch and the accelerometer really opens up a lot of opportunities for innovative gaming," CEO Hong-Yee Wong told PocketGamer. "We've been really impressed with the iPhone. The tilt is really sensitive, and you can get precise movement using it."
IUGO has not yet determined how the game will be made public.