EDIT: THIS WAS MY PREDICTION 1HR BEFORE THE CONFERENCE STARTED!
New things in iPhone5:
4" machine with a new overall look.
Quad-core technology.
4G (real 4G "LTE", not HSPA+ which is actually 3G)
8MP camera
improved display
various OS improvements (mostly minor... I see a gaming push in new store)
$200 on contract and 16GB, $300 on contract and 32GB
White and Black models
Launch next month
EDIT2: So no gaming push and no iPhone 5. However, I actually expected that to go hand in hand, if I'd known there'd be no iPhone 5 I wouldn't have put the gaming info in my prediction. Guess that new hardware will have its own event later in the year.