In a July 26 interview, Founder and CEO, Seth Priebatsch, explained that his first product, SCVNGR, for which the parent company is named, is a location-based game with a simple premise: visit businesses, play games, get rewards.
Though the smart phone itself has been out for a few years now, its value as a game device and its game play mechanics (i.e. using the accelerometer or location-based systems) have only begun to take off relatively recently.