Apple, in a bid to better compete with Nintendo DS and Sony's PlayStation Portable (PSP), may be considering a separate section of its App Store devoted to games at $19.99. Part of the problem with the App store for major game publishers is the sheer number of games available makes it hard to stand out.
With all of the independent game developers out there the App Store boasts over 1500 games. They are the most popular category and represent roughly 25 percent of all applications available for the iPhone and iPod Touch. The top 100 list naturally leans towards less expensive, popular games.
Assuming the model is successful, the concept of "premium" games would increase profits both for large developers and Apple. It's possible that Apple could announce this strategy at the Worldwide Developers Conference (WWDC) in June.
Apple has tried to encourage developers to release games at $9.99 in the past, however many have ended up reducing their price due to stiff competition.