EA has announced an application for the Nintendo DSi that takes advantage of the console's camera functionality to put your MySims characters into the real world.
The app - MySims Camera - allows you to take photos and then overlay 3D characters on top, which can be animated, moved, scaled, rotated, and cropped to your heart's content. You can also draw on the photos or use a stamp tool, then put it in a frame.
It comes with eight MySims characters, and four more that are unlockable. The characters have 30 animations available to them, and there are 12 different stamps to choose from. Once you've got your photos sorted, you can exchange them with nearby DSi users, or copy them to a PC/Mac via the console's SD card slot.
The app will be shipping in September 09, it's not clear how much it'll cost.