It's an app that uses GPS to allow you to catch pokemon in the real world. as you move around, your in-game character moves too, and when you get close enough to a pokemon you can catch it by throwing pokeballs at it. There are pokestops, which are locations like churches, parks, restaurants, etc. where you can visit in the real world to get items, and there are Gyms, which can be captured by defeating the pokemon guarding it and placing one of your own pokemon there, claiming it for one of three "teams."