We'd heard earlier that ngmoco's new game Eliminate: Gun Range was one of the first apps to really take advantage of the iPhone 4's gyroscope, and now that we've had a chance to play with it, we've got say there's a ton of potential here. E:GR is itself just a simple shooter, but the gyroscope adds what seems like nearly 1:1 motion control to the proceedings -- and since you're moving the display itself, it almost feels like augmented reality. It's hard to explain, since it's so unlike any mobile UI experience we've encountered before, but as soon as we tried it our brains pretty much exploded with possibilities -- we're thinking drastic improvements to actual augmented reality apps like Layar, all kinds of crazy flight simulator games, much more refined GPS apps, you name it. Video after the break.

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Gyroscope gunning on the iPhone 4 with Eliminate: Gun Range (video)