Though the country earlier this year published a sci-fi MMO, Garshasp - a monster hunter of folklore - is billed is Iran's first AAA-quality video game. It's being made for the PC because trade sanctions prohibit selling dev kits there.

Thus, Garshasp has been in development since 2006, and its makers are waiting on a publishing deal before taking it international. As for the game itself, it appears to be a straightforward third-person action-adventure game, focusing on combo-heavy melee combat with jumping puzzles and other platforming aspects. You can read up on more about the game at its Wikipedia entry.

Iran's First AAA Video Game Looks Impressive [megamers, thanks mathare92]