Photos: Apple iPhone OS 3.0, copy and paste included

Forstall discusses a new peer-to-peer system in which you can find other iPhones and iPod Touches in a given area that are playing the same game as you. He gives the example of two kids in the back of a car. iPhone 3.0 will automatically discover other applications over Bluetooth, and there's no pairing.

"Completely seamless," he promises. Bonjour is the back-end technology behind this, and it's not just for games.

Photo by James Martin/CNET

Caption by staff