Game developer Namco has founded a dedicated iPhone division, meant to exploit the unusual popularity of the device. The division is being helped by Jonathan Kromrey, an iPod/iPhone games producer and designer, who was formerly responsible for research, design and development of products and applications at Apple. Kromrey notes that this week is currently the only one this year in which Namco does not expect to announce some form of new iPhone content, whether in terms of games or related material.

Namco already has a number of titles on the iPhone, ranging from arcade remakes like Pac-Man and Dig Dug to full-scale games such as I Love Katamari. The company intends to expand the range available, however, to include casual games as well as more elaborate action offerings. In the latter category could be new Tekken and Soulcalibur fighting games. "I would love that," says Kromrey. "I think twitch games would be great, it's just the controls that are a challenge. We are thinking about that."

Pricing for most titles is expected to amount to roughly $1 per hour of gameplay. A game playable for five hours, for example, would likely be a $5 download at the App Store.