From Android Game Development Wiki

The Qualcomm MSM7200 is the chip used in the original Dream AKA T-Mobile G1. The chip is still in use today and was the cornerstone of the first generation of Android devices. Devices that use this chip include:

• T-Mobile G1 AKA HTC Dream
• HTC Hero
• T-Mobile MyTouch 3G AKA HTC Magic
• Motorola Droid Eris
• Motorola Cliq

There are a few variants of the chip, one which has integrated GPU and one which does not. The one that does not is in the HTC Tattoo. For that device, all OpenGL is rendered using PixelFlinger, which is the same software rendering engine as the Android Emulator.

The chip runs at a max of 528Mhz and supports ARM5 instructions, though many implementations have the chip clocked down to somewhere in the low 400Mhz range.

The chip is quite capable and supports much of OpenGL ES 1.1, however it has many shortcomings.

[edit] Shortcomings of this chip

• Big - It does some of its 3D Processing on the CPU which can become a severe performance bottleneck.
• It incorrectly handles GL Texture Matrices, causing all types of problems when use is attempted.
• It can process a single GL Light source but additional ones are processed on the CPU.
• It is very fill limited.

One of the biggest issues is not necessarily the chip itself but is the fact that most devices with this chip do not run Android 2.2 or newer, so they do not get the benefit of JIT to speed up the java side of things. The chip is quite capable of rendering a decent scene in real time but often times real-time OGG decoding, touch processing (Touch Event Flooding, High CPU Usage on Touch Events) and then the actual game itself (even when native) eat up so much of the CPU that the GPU is slowed down by virtue of the shared processing space.