Two huge names at Valve many years back, Kelly Bailey (mainly known for Half-life's music) and Mike Dussault (a programmer and a key name behind the Source SDK) have set up their own mobile games company, SunSpark Labs.
They have already developed their first app called Morfo, which allows you to create a full 3D moving head from a photo taken on your iphone / ipad or Windows phone. The app which currently costs $1.99 (in a sale) has already reached over 1 million downloads. You can see how it works in the video below.
You can read more about app on the gameslice website, thanks to Geoff for getting in touch.