iPhone developers Firemint have been demoing their new iPhone racing game, Real Racing, which could make an appearance on the Apple iPhone AppStore by Christmas. In the video below you can see the awesome graphics capabilities of the iPhone as a gaming platform, as well as Real Racing’s use of the iPhone accelerometer.  You can play the game one-player or multiplayer over either your cellphone network or via WiFi.

Real Racing ties their iPhone gaming up with online features, including the ability to automatically convert your most recent lap to a video and upload it to YouTube. Firemint plan applications for Facebook and other social networking sites that would allow racers to show off their lap times, as well as hosting mini-leagues on their own servers which adds a nice touch of social gaming to their products.

Real Racing iPhone game demo video