They were able to use the front-facing camera to track your head movements to create the cool effects similar to the Kinect-style sensor on the XBox.
This new experience, if-and-when it goes commercial, may open up an even whole new way of how we view our information. The 3D effects will provide new possibilities in the video game experience and even in design implications such as viewing CAD drawings, 3D computer renderings and virtual models.... I'll keep my fingers crossed :)
Check out the amazing video demo below!
...Come on Google Sketchup!
Lets make an official iPad App that allows viewing computer models using these effects...
do you hear me developers?