I've claimed over and over that the iPhone is built to buy things from iTunes. One of the things that we should be able to buy from iTunes is programs. Games, if that's your thing; mental diversions. I'm glad to report that 9to5mac.com says that it's coming. Of course, they call it 3rd party development, which is kind of a misnomer. If it requires that a developer sign a contract and get Apple's blessing just to get the development tools, it's a lot more like 2nd party development. It would bring the iPhone and iPod Touch to feature parity with the iPod Classic and Nano, so I'm glad to see it, assuming it's true (which I do).
figure 1: Spore, an example of a 2nd party game that could come to the iPhone
There's no release date listed, so there's no way to tell when it will be available. Safe guesses include after Leopard (more on that later this morning) and in January for Macworld 2008. Here's the expected process of it all: