Next-generation iPhones likely to focus on internal improvements.
Apple Extending Trademark to Include Handheld Gaming
Toys, games and playthings, namely, hand-held units for playing electronic games; hand-held units for playing video games; stand alone video game machines; electronic games other than those adapted for use with television receivers only; LCD game machines; electronic educational game machines; toys, namely battery-powered computer gamesThe filing took place on February 5th, 2008.
Apple's iPods have always contained a few built-in games, but in 2006, Apple extended this to allow 3rd party developers release downloadable games through iTunes. The trademark application, however, will certainly reignite rumors that Apple is seriously pursing its own game development or even its own game console.
Apple has been known to be recruiting game developers back in 2006, and has authored a number of the existing iPod games. In the mid 90's, Apple did launch a short lived game console called Pippin.
Update: Game Developer Job listing from Apple, via 9to5.
Video Game Design and Production. Successful candidate possesses a proven track-record of producing and designing great video games.This may not mean much, as Apple has already written and released a number of iPod games.