The group of hackers and developers known as pandaelf found themselves with a PlayStation 3, an iOS device and some time on their hands. With a bit of ingenuity, they figured out a way to play their PS3 games on their iPhone, iPad or iPod touch. The setup is slightly complex and requires you to attach a capture device as well as an input converter with a USB mouse and keyboard to the PS3. You also need a PC to serve as the conduit between the game console and your portable Apple device.
The capture device sends video from the PS3 to a nearby PC, and the keyboard/mouse converter sends and receives button presses. The iOS device then connects to the computer using a custom build of everyAir, a remote desktop application. Basically, the PS3 sends its info to the PC, which processes the incoming stream and sends it to your iPad, iPhone or iPod touch via everyAir. This communication is bi-directional, so the information flows both ways.
Currently, this custom build of everyAir is not available to the public, so the average iOS owner won't be able to do anything with this setup quite yet. While you wait for this build to become available, you can check out a video of the system in action below.