This is fantastic news - and completely expected :)
The architecture of the iPhone always made it more of a console than a mobile - and it was only a matter of time before they started pushing the games angle. Expect some "unique" games as well.
The way I see it - its like WiiWare - but better. Its for a mobile device, has *heaps* of onboard storage, has better SDKs/tools, is much cheaper to develop for - and Apple seem more open than Ninty about this all.
My studio will definitely (at the least) be looking into it - and we may well start porting our engine to the iPhone immediately (its design is almost perfect for the device ironically).
If I was Sony, I would start being worried sometime around now. Seems like the perfect PSP killer to me. Nintendo might start getting worried as well...
Gesta Non Verba
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