Atari's Developer Challenge has been taking submissions for possible Pong-inspired iOS games since late February (Disclaimer: I'm serving as a judge on the final panel for the contest, though I haven't done anything yet and am not being paid for my time), and the company has finally selected 20 semifinalists from more than 80 submissions. You can read through the list of the semifinalist studios on the link there. Quite a few of them, as some quick Google searches will show, already have their own apps in the App Store.
The next step for the contest will be for these semifinalists to put together some demo videos of their proposed projects, which will be due in June. We judges will get a crack at the proposals then, and finalists will be announced on June 19, with the full winners list announced in August. The winners will get their apps published by Atari, with proceeds split between Atari and the original creators. It sounds like the contest is going well. I look forward to seeing what's been submitted!