Augmented Reality Google Maps is coming
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Forget GPS and a compass, this uses more accurate camera-based positioning.
The feature seemed aimed at solving a lot of pain points that pop up when using Google Maps in a big city. The densely packed points-of-interest means GPS isn't really accurate enough for getting around, especially when you consider GPS doesn't work well indoors, or underground, or when you're surrounded by tall buildings, and it can take several minutes to reach full accuracy when stepping outside. Smartphone compasses are also, generally, terrible when you are standing still and need to figure out which direction to start walking.
