Taking a page from Microsoft/Krome's Game Room experience on Xbox 360, Capcom is creating its own virtual arcade filled with classic cabinets for the iPhone. Scheduled to release next month, Capcom Arcade will initially include four titles: Ghouls 'N Ghosts, Commandos, 1942, and Street Fighter II.

Capcom intends to release a new classic title each month for free. The app itself will be free, too, though users will only receive three tokens at first to play the included games (token amount replenishes each day). They'll need to buy more virtual tokens to play more, or purchase the cabinet outright for $4.

Each of the games have been adapted for touch screen play, and will also include two difficulty modes: one based on original settings and another designed for the iPhone that will presumably present less of a challenge.

[Via Slide To Play, IGN]