Many were expecting Apple to announce a revamped iPod lineup at its “music event” this morning. However, before tending to the MP3 players that arguably propelled the company to greatness, Apple decided to address its current cash cow, the iPhone 4.

Next week, iOS 4.1 will be released with purported fixes for problems with the new iPhone’s Bluetooth compatibility and its proximity sensor. This OS update is also said to resolve bugs with the old iPhone 3G, which struggles mightily to run iOS 4.0 with acceptable performance.

On the features front:

• iOS 4.1 brings support for TV rentals,
• HDR photography,
• and a new Game Center app designed specifically for multiplayer gaming.
• Game Center will allow users to easily invite friends to join them in multiplayer matches,
• and it will offer automatic matchmaking if you’d rather link up with strangers.

Epic was also on hand to show off Project Sword, an “action-packed RPG adventure” that uses a version of the Unreal engine and looks very nice indeed.Mobile gaming is becoming a big focus for Apple, particularly with the iPod Touch. According to Jobs, the Touch is Apple’s best-selling iPod, and its sales eclipse those of handheld gaming systems from Nintendo and Sony combined.

Get more on the latest updates, announcements and news from Microsoft, Google and Apple by following updates on our new twitter or facebook page.