Seems that Apple is getting serious about turning the iphone into a gaming platform, and look at the info about peripherals!  Interesting...M$ had better get hot on getting Zune HD prepped, because Apple is BRINGING IT!  I can't help but wonder if this is why Zune HD was a no-show at E3...

http://kotaku.com/5279384/new-iphone-will-include-3d-graphics-chip-hits-july

"Next week at Apple's annual World Wide Developers Conference the company will be unveiling its new iPhone, a device that will sport a built-in 3D graphics chip, operate on a new, higher-speed network and hit mid-July, sources tell Kotaku.

Our sources told us that the new iPhone will also tout much more robust Bluetooth support, an upgrade that will allow third-party developers to to release add-on products like a keyboard or game controller.

The new network, which AT&T is currently working on, in theory may also allow AT&T to extend its exclusivity deal with Apple.

Both the new iPhone and the new firmware for the current iPhone will roll-out on July 17, sources tell us.

This rumor comes as word hits that Apple is also starting to hire in-house game developers.

The inclusion of the 3D graphics chip and hiring of developers are, in many ways, Apple's acknowledgment of the growing importance of gaming to the platform. Another thing the developer is considering to help bolster gaming on the iPhone include the possibility of a new store dedicated solely to gaming. The company will also be watching with great interest the roll-out of in-game microtransactions with the latest firmware.

We were unable to confirm any of this beyond our sources, so take this with a grain of salt and keep your fingers crossed for the big announcement hitting this coming Monday. We've contacted Apple for clarification on the matter."

Apple's presence next gen is inevitable.

M$ had better release some heavy details on Zune HD soon, because right now, that 64GB Ipod Touch is calling my name...especially with a 3D chip...that's going to be 400 bucks well spent!

I would think so because they are here this gen and seem to be doing okay so yeah they're probably not going to drop out, they might even expand.

I love to see that Apple is hiring developers and upgrading their tech (the iPhone can already do 3D but this will make it even better). Apple's apps are the most polished combinations of code I have ever encountered, I recently became an iPhone developer and I can tell you from a technical point all of their apps shine like brand new pennies - can't wait to see games they might crank out.

A NEW one?
What the F* ....... >_

I hope the new OS comes out this monday.

The current iPhone already has a 3D accelerator chip, the PowerVR MBX Lite:

With KYRO 3 (2D/3D AIB) products shelved due to STMicro closing its graphics division, PowerVR concentrated on the portable market with its next design, the low power PowerVR MBX. It, and its SGX successors, have become the de facto standards for mobile 3D, having been licensed by seven of the top ten semiconductor manufacturers including Intel, Texas Instruments, Samsung, NEC, NXP Semiconductors, Freescale, Renesas, and Sunplus, and in use in many high-end cellphones including the Apple iPhone, Nokia N95, Sony Ericsson P1, and Motorola RIZR Z8.

I hope it comes with an actually good camera and flash. And GPS. That's the reasons I don't own a current 3G iPhone.

Cool...so I'm wondering if this is a dedicated 3-D Chip?

It's plausible, because Apple hired two top executives of AMD's graphics division a few months ago, and AMD is one of the top two makers of graphics chips in the world.