Yes, most software developers plan to take full advantage of the extra features in Second Generation chips. Test boards have been out to developers for a little while now. Early feedback from developers has been very encouraging indeed and we are expecting many of the hot games for the 1998 Christmas season to take full advantage of the new hardware features.
Upward compatibility is the key here.
We cannot comment on Namco's title development plans. Basically concerning the quality of PowerVR OpenGL support in Quake 2 compared to 3Dfx OpenGL support. Second Generation chips have many enhancements to ensure good OpenGL support. This features will also dramically improve the quality level for titles build on the GLQuake engine. Details of exactly which features will be supported in each chip will be released at announcement.