I don't think that Steve Jobs intends to take over the gaming market with the new iPods...yet...but in citing the necessity of redesigning the iPod Nano, he listed "games" as a chief reason for the bigger screen size. And then he announced that 3 new games will come with the new Nano. The first is Vortex (pictured above) which is like 3D Arkanoid. The second will be an EA Sudoku title. And the third is still unannounced.
Live: The Beat Goes On [gizmodo]