Utah game company Chair Entertainment, which is based in Provo, was given a rare invitation to show up on stage with Apple chief executive Steve Jobs to show off an incredible-looking game for the iPhone and iPod touch.

It's called "Citadel," what looks like a fighting/RPG game in medival time. The game mechanics didn't look particularly special, but it's hard to determine with such a short demonstration. But when Chair co-found Donald Mustard showed off the game's graphics, you could hear a collective "wow" in the audience.

Jobs showed off a new lineup of iPods and a new Apple TV device for the living room. The new iPod touch will have a front-facing camera for FaceTime video conferencing. It does have a back camera but only for video (rats).

Jobs also introduced a new lineup of iPod shuffles and nanos with new square screens. He also talked about the new iOS 4.1 and upcomign iOS 4.2 operating systems for the iPhone, iPod touch and iPad.

But one of the highlights definitely was the "Citadel" demo, of which you can see a screenshot of above. You can actually download the tech demo right now on iTunes. The game itself comes out later this year.