A few days ago I commented on an article discussing if Apple could kill the Nintendo DS.

Today, Steve Jobs is giving his keynote presentation at Apple's developer's conference (WWDC) and Engadget is live blogging it.

You'll see from the picture above, and if you visit the Engadget link, that a big focus of the new App Store (where iPhone users can buy applications) is games. Amazingly, the game pictured above is only two weeks into development, and it already looks great.

While Apple will never overtake Nintendo's lead in the handheld market, I do think that iPhone games will be successful.

More pics and info from Engadget