Real Racing 2 HD for iPad 2 is going to sport 1080p visuals on an HDTV while also running a display on the touch screen.
As you can see the graphic improvments are very impressive for a hand-held device. Apple claimed 9x's the power in the graphics of the iPad 2 and this demo really shows off that improvment. The iPad itself is used as a steering wheel and also as a display for the track map and stats on the current race. The developer Firemint says the game runs at a silky smooth 30 fps in full screen 1080p.
This is the first game to make use of dual displays on the iPad 2 and to run native 1080p visuals through the video out adapter. Now that App developers can see just what can be done I believe we will start seeing console quality games showing up for the iPad 2 making it a full fledged mobile hand-hand and TV console system able to display lower end current gen graphics. I say lower end only because I haven't seen anyone release something on the level of Xbox 360 or PS3 yet. But since it can display 1080p visuals it's only a matter of time before some developer finds a way to make PS3 quality games for the iPad2.
This also makes me wonder what will be happening with Apple TV. It is very likely that they could make games for it running wii quality graphics using an iPhone or iPod touch as a controller, but I think they will wait for the next version of Apple TV with 1080p before making an App store for it and games.
Of course all that said, Apple is currently looking into making AirPlay availible as a native funtion in new HDTV's making Apple TV redondent. In that case I'm guessing that the next step will be to send 1080p visuals over AirPlay directly to HDTV's meaning that your iPod 5th gen, iPhone 5 and iPad 2 or 3 will be a portable home console that plays on whatever TV you are sitting in front of.
I hope that Apple engineers read this site and take my idea to heart. If they succeed it will be a real game changer for all the system makers. Imagine not having to have a system wired to your TV. You simply look through your library of games and select the TV in your house you wish to play on and start playing. Maybe you get tired of playing on the main TV and want to lay in bed while still playing the same game. You just pause it hit the airplay symbol and select the bedroom tv and hit pause again to pick up where you left off. When you leave the house for a rode trip just play on the touch screen.
If the level of graphics can match what is used by a PS3 or Xbox 360 then I think you have the perfect console. What say you?