At today's unveiling of the upcoming 3.0 iPhone update, Apple announced that they will begin supporting the ability to sell downloadable content for games and other applications through the device.
In App Purchase would allow developers to sell new levels, magazines to sell a subscription or Ebook publishers to sell books, to name a few.
The service would use the same iTunes username and password and would have the same business model as the store, with developers receiving 70 percent of the revenue.
The operating system update will also bring expanded multiplayer support with new Peer-to-Peer connectivity. The connectivity will let you bring up a dialog that finds local devices over Bluetooth only. The service will also support non-gaming applications.
With many iPhone games supporting free updates and new levels, I sure hope this doesn't turn everything into a priced download.