Back when we first caught a glimpse of the NanoTouch, we'll freely admit that we thought it might be superb for small-scale gaming. The 2.4-inch LCD, developed by Microsoft and the Hasso Plattner Institue, the tiny screen boasts a capacitive touchscreen on the back (much like the LucidTouch), and quite sensitive. Check out the video demonstration of the NanoTouch in some gaming action after the break.[Via Engadget Japanese]