The next version of the iPhone will see Apple look to take the video game market by storm with an integrated 3D graphics chip and more new features to take on the PSP and DSi.

According to Kotaku the next generation of iPhone will be unveiled during Apple’s annual World Wide Developers Conference with extra tricks up to sleeve to further transform the device into a must-have gaming device.

As well as an improved 3D graphics chip for better visuals the phone will have better Bluetooth support for add-ons like game controllers and a higher-speed network suited to MMO games like World of Warcraft, which was earlier spotted on an iPhone.

It seems there’s also plans to open up an App Store dedicated to gaming. Many feel that if another new company is going to enter the video game market it will be Apple. According to reports the Cupertino-based company is even hiring its own in-house games developers.

Nintendo and Sony in particular will all have been watching Apple’s movements into the games market closely, but the latest developments are sure to leave the two companies wondering what Apple has in store in future.

Via [Kotaku]

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