The Zii Egg runs Android, and it can apparently play back high-definition H.264 video, output it to an HDTV, and run 3D apps written in OpenGL ES. Hardware-wise, the handheld features a 480x320 multi-touch display, 32GB of memory, a full-sized SD card slot, two cameras (a VGA one at the front and an HD one at the back), a GPS, an accelerometer, a light sensor, a speaker, and a microphone.
Source: Tech Report