A week or so ago we linked to Erica Sadun’s demo of the iPhone SDK’s undocumented video out feature. Well, she’s been busy since then talking with Freeverse, the developers behind the hit Moto Chaser game for the iPhone. The result? The tech demo featured above.

Good news is that the possibilities are mind-boggling. Bad news is that we’re not there yet:

On the 2G touch, Moto Chaser can reach approximately 20 frames per second. This makes the game, in the words of Freeverse Producer Bruce Morrison, “nearly playable.” Morrison manages the Freeverse product teams and was heavily involved in developing Moto Chaser; he designed all the levels in the game. The norm for commercial games is 30fps, a point at which motion becomes as smooth and watchable as normal TV video. For reference, the current iPhone release of Moto Chaser runs at 26fps and includes many optimizations to achieve even that on the iPhone’s relatively slow processor and limited RAM memory.

Check out the rest of the article for look into how they did it, how long it took, and where they might go from here…