Cook chopped bacon in a large skillet until crisp; remove bacon, and drain on paper towels, reserving 2 tablespoons drippings in skillet. Set bacon aside.
Sauté corn, onion, and bell peppers in hot drippings in skillet over medium-high heat 6 minutes or until tender. Add cream cheese and half-and-half, stirring until cream cheese melts. Stir in sugar, salt, and pepper. Top with bacon.