Zodttd, the intrepid developer behind the Game Boy Advance emulator on the iPhone, says he’s working on an N64 emulator for the 3GS and the new iPod Touch. Just imagine playing GoldenEye on the iPhone. Just imagine trying to strafe!

It sounds pretty cool, but really the controller could become a problem. Where do you put the Z button? And the C buttons? It’s a lot to try to cram onto the iPhone’s screen. I’m impressed, though, that the 3GS is fast enough to run most of the games. Zodttd did say that the higher-end games won’t run just yet, but that sounds to me like he’s got plans for them in the future. Now if someone would put together a standard controller accessory, everything would be just fine.

One of the biggest improvements to the iPhone 3GS was its graphics capabilities. The upgrade allows for technologies like OpenGL 2.0, which means texture mapping, real-time shadow rendering, and all sorts of other eye-candy. That is, if the developers will develop it.

Unfortunately the upgrade means that games that run on the 3GS may not be able to run on the regular 3G (3G games will work in the other direction though). This means developers have to decide whether to support the “new” platform, or simply continue to offer games that will be compatible for both.

IndustryGamers recently asked a few developers if the new plan was worth developing for.

According to EA Mobile, it absolutely is. For many games it sounds like EA will develop two versions, one to run on each of the phones. Other developers, though, don’t share EA’s enthusiasm. Sega, for instance, will only be developing multiple versions for select games, while the rest remain compatible with the 3G. Digital Chocolate is the downer of the group, saying the 3GS will improve existing products to the point that there is no need for a separate release.

Right now this might not mean much since we’ve not yet played a 3GS optimized game. The guys at Firemint, though, are eager to show off 3GS capabilities in their new racer. Check out the demo video on YouTube. It’s pretty damn impressive.