In a comment filed to Slashdot, id co-founder John Carmack says that his company is looking at iPhone development. Sega's on board, as are EA and Gameloft, and it appears we may be seeing an accelerometer controlled Orcs & Elves if Carmack has his way. Although Carmack apparently didn't have nice things to say about iPod dev tools, pissing of Steve Jobs, he was up on iTunes distribution and its 70% royalty rate.
"The ability to distribute larger applications than the over-the-air limits and effectively market your title with more than a dozen character deck name, combined with the reasonable income split make this look like a very interesting market," he says. We're sure John can knock up a solid Doom 3 engine over the weekend if need be.