http://www.shauninman.com/archive/2010/02/23/mimeo_and_the_kleptopus_king Executive Summary: This guy Shaun is preparing a game for the iPhone which, in homage to Nintendo game consoles, starts in 1-bit graphics and 1-channel sound, and progresses through higher resolutions as the character collects power-ups.
Interesting variation on a theme!
Due out in the "2010 holiday season". I'm looking forward to seeing the finished product :)