
According to ZDNet, computer giant Apple is working on a very powerful new iPhone that could hit stores later this year. The new phone, currently about as powerful as Sony's excellent PlayStation Portable, would be more than twice as powerful, capable of rendering graphics – and games – better than anything before it in the portable gaming world.
And unlike the PSP or Nintendo DS, the iPhone allows gamers to download games via Apple's App Store, which users can access wirelessly or on their computer.

New Chrono Trigger Form-ism figures of Crono and Marle have been showcased at a Square Enix pop-up store, with pre-orders expected soon.

Growth driven by digital software and console hardware sales.
To celebrate Tomb Raider: Legend's 20th anniversary, the official channels have shared an early in-development gameplay demo.
meh
if apple wants to get into gaming, they need to make the iphone have controls like the PSP and the DS, just a touch screen doesnt work.
only problem with the app store is certain things cant be downloaded, example certain podcasts or musics cause they are around 10MB, so i dont know how apple would do with graphically better games which would probably require more MB to make.
this will be perfect for me. hopefully by that time the exclusive deal with AT&T will have ended then i can go and pick up the newer model!
They need to ditch the BS deal with AT-T and unlock the hardware for all networks. That would definitely have the competition scrambling.