So far, the App Store hasn't really had any console quality games. A few games have come close, like Real Racing and most GameLoft games. The production value just isn't there that would be in a $40-$50+ game. The highest price for a popular game seems to be $10. I always hear people complain that they're only getting a game that takes an hour and a half to three hours to complete, even though the game is only $10. I always hear people request multiplayer in games as well. The power of the iPhone was more comparable to the more powerful cell phones out rather than even the PSP, graphics-wise. With the iPhone 3GS, a developer could raise their production level and budget considerably to create games more comparable to what you'd find on consoles, if not full ports of new games. Would you actually be willing to pay for much higher quality games? If a developer creates a $40 game and it doesn't sell as well as they hoped, that could destroy the potential for console quality games. The iPhone would be a much better gaming device with higher priced, higher quality games.