id Software and Fountainhead Partner to Create id Mobile has word that id Software is expanding upon it's mobile gaming initiative with a dedicated mobile development arm, to be headed by Fountainhead Entertainment Founder and former Director of Business Development at id Software, Katherine Anna Kang, who is also the wife of id co-owner John Carmack. Carmack on id Mobile, Crap Games, and Why iPod Sucks is a Q&A with Mr. Carmack about the news, here's a bit that explains that this is in part a way of hedging against a paradigm shift in the gaming market:

It's been an interesting journey to get here in that we didn't start off with some grand strategic planning where we decided this was going to be really important. It all started when I got a cell phone and thought the games on it were really bad and we could do a lot better. That led to Doom RPG, which was a big success. Then we followed up with Orcs & Elves and now Orcs & Elves II coming out... By testing the waters like this we've found out it's a viable business right now, we're doing good business, the products are successful and profitable, we've got a plan laid out for a bunch of new things we want to be doing, but I think there's really some significant potential.

The worst, most pessimistic case is that we could carry on as we're doing right now, doing successful games and having fun with all of this, but I think over the course of the next five years or so there's the possibility that the mobile gaming market could wind up becoming significantly larger than some of the traditional markets. There are 10 to 20 times as many mobile phones as there are personal computers and 100 times as many as there are console platforms. As these things evolve into devices more like the media powerhouses we're used to developing for, there's a possibility we could have a breakout success there. I think if we go into this thing thinking we'll do our best, we'll be successful, then we may be positioned for something that could be a really significant tipping point some time in the next five years or so. Mobile gaming really could take off.