Apple announced earlier this year that AirPlay would allow iPhones and iPads to mirror their content wirelessly to Apple TV, but the functionality just got a lot more interesting. A demo from Firemint's Real Racing 2 shows off some pretty slick split-screen multiplayer TV gaming capabilities using upcoming iOS 5 enhancements. The feature seems to not only mirror content, but utilize the bigger screen to expand what you actually experience during gameplay, as suggested by the iPad shown in the demo of the game (in the video after the break).
Split-screen iOS TV gaming might not upset Nintendo's future Wii U sales, but this is a nice enhancement for people who already own at least one iOS device (and an Apple TV). And unlike the Wii U, you'll be able to play this starting October 12th.