This whole iPhone as a gaming platform thing might just be catching on. According to a report by mobile analytics firm Flurry, revenue from games sold for Apple's touch-based devices grew from $115 million in 2008 to an estimated $500 million last year in the US. Impressive indeed -- but even more so is Flurry's research showing that iPhone / iPod touch games now account for at least 19 percent of total US handheld software revenue, up from 5 percent in 2009.
Flurry's findings show that most of that share has been taken away from Sony's PSP, which accounted for 11 percent of 2009's handheld software revenue, down from 20 percent the year before. Money taken in from Nintendo DS game sales, on the other hand(held), only decreased five percent since 2008, with Flurry pegging it at 70 percent of the market in '09.
The firm sees Apple continuing to put the hurt on PSP software revenue, pointing out that while downloadable iPhone and iPod touch games are selling "in droves," Sony's introduction of the PSP Go and an increased focus on digital game distribution didn't help the platform hold any ground.
[Via Engadget]
Reader Comments (68)
Posted: Mar 23rd 2010 4:47PM Kodros said
This pie chart is garbage and so is the analyst. Looking at the percentage of portable game software revenue is completely misleading.
Posted: Mar 23rd 2010 4:54PM eilegz said
all it started with nintendo and its "revolution", yeah the real and only revolution here its the casual taking over the gaming, the wii, ds and iphone its signs of change.. dark days will come
Posted: Mar 23rd 2010 5:12PM Mr Khan said
The industry was becoming too insular, promoting as many bad ideas as good ideas from within. Revolution brings baggage, of course, but ultimately it's weeding out the bad ideas, or will weed them out as the casuals come in.
The key is that the casuals feel no obligation to do things, no obligation to buy a console, no obligation to buy a game for that console. Gamers feel obligated to play games, so its easier to feed us crap because we'll buy more. With gamers its not a question of making you want to buy a game, but wanting to make you buy a specific game, with casuals you need to want them to buy a game at all. It promotes a higher standard for reaching out to consumers, whereas before the industry could just depend on us to buy things (
remember when Sony said people would buy a PS3 even if it had no games? They were right, to a certain extent. Launch PS3 users, and early adopters for all consoles in general, are the ones who buy a product just on promise, and no immediate substance, which isn't a bad thing (i'm not saying we're stupid), but that takes the pressure off the companies to make the consoles compelling from the get-go, or at least as compelling as they would be
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The key is that the casuals feel no obligation to do things, no obligation to buy a console, no obligation to buy a game for that console. Gamers feel obligated to play games, so its easier to feed us crap because we'll buy more. With gamers its not a question of making you want to buy a game, but wanting to make you buy a specific game, with casuals you need to want them to buy a game at all. It promotes a higher standard for reaching out to consumers, whereas before the industry could just depend on us to buy things (
remember when Sony said people would buy a PS3 even if it had no games? They were right, to a certain extent. Launch PS3 users, and early adopters for all consoles in general, are the ones who buy a product just on promise, and no immediate substance, which isn't a bad thing (i'm not saying we're stupid), but that takes the pressure off the companies to make the consoles compelling from the get-go, or at least as compelling as they would be
Posted: Mar 23rd 2010 4:57PM leobebes said
I just got a Droid from Verizon (I left my Iphone because I hate AT&T), and its absolutely spectacular. Does anyone here know if the specs on a Droid can handle most of the iphone/ipod game libraries?
Posted: Mar 23rd 2010 5:48PM Marco le Polo said
iPhone GTFO!
Posted: Mar 23rd 2010 6:09PM (Unverified) said
Both the post on this blog and the actual article is rather problematical. It gives the impression that the iPhone is in direct competition with the DS and the PSP, and is eating into the market share held by the two traditional handhelds. While this certainly may be the case, whether it is or is not is never addressed. It is very possible that iPhone games attract a different kind of consumer than the DS and PSP, expanding the market rather than taking a larger piece of a fixed pie.
Posted: Mar 23rd 2010 6:57PM gshauger said
The nice thing about the iPhone is I'm already carrying it everywhere and all the games I play are free. How many free games are there for the DS?
The games for the iPhone might be simple and gimmicky but boy does that sound familiar (I'm looking at you wii)
The games for the iPhone might be simple and gimmicky but boy does that sound familiar (I'm looking at you wii)
Posted: Mar 23rd 2010 7:13PM (Unverified) said
Did you guys know that you can use the iPhone as a phone as well? It's true.
Posted: Mar 23rd 2010 7:28PM Mal F4cti0n said
"Money taken in from Nintendo DS game sales, on the other hand(held), only decreased five percent since 2008, with Flurry pegging it at 70 percent of the market in '09."
Well, that might not be true. The 70% of 2009 handheld game sales versus the 75% of 2008 game sales is not against a specific dollar amount, it is against the total sales for that particular year.
If game sales increased, Nintendo might have made more money while losing "market share", which is different from "money taken in". If 2009 handheld sales decreased versus 2008, then Nintendo lost revenue from 2008 to 2009. I imagine though, that the amount of money spent on handhelds in 2009 went up, so maybe Nintendo brought in more money but lost market share.
Well, that might not be true. The 70% of 2009 handheld game sales versus the 75% of 2008 game sales is not against a specific dollar amount, it is against the total sales for that particular year.
If game sales increased, Nintendo might have made more money while losing "market share", which is different from "money taken in". If 2009 handheld sales decreased versus 2008, then Nintendo lost revenue from 2008 to 2009. I imagine though, that the amount of money spent on handhelds in 2009 went up, so maybe Nintendo brought in more money but lost market share.
Posted: Mar 24th 2010 6:45AM stiak said
They managed to get hold of PSN revenue from sony? I'd like to see that all by itself.
Posted: Mar 24th 2010 6:22AM armageddon said
If apple can drive sony out of the handheld market fine, MS will drive apple out just as soon as they release a real handheld gaming device (IE: not Zune HD, not PSP, not iPhone, maybe Windows Mobile 7).
Posted: Mar 24th 2010 9:25AM paper said
I think this group who made this statistic is smoking the good stuff. The people who are going to buy this are the apple heads those who already have an ibook and ipod and iphone and every other little apple thing possible. I as a gamer would never think oh hey the ipad... thats where the games are at. I am sticking to my psp and DS. Unless you think the new mario is going to come out on the ipad in which case... the controls would suck.
Posted: Mar 24th 2010 9:25AM ECJ said
I think that these charts are a bit off. It's a comparison of revenue, not really of market share, since it doesn't take into account other mobile gaming platforms (windows mobile, Android and Symbian) however small they may be. Also it doesn't show that Apple grew the market in a way that no one else has previously. Both the casual gamer and developer have benefited from the iPhone platform.
I'm not going to complain and belittle Apple for their efforts. Nintendo and Sony, have had a captured audience, years of experience and the framework to do the same thing Apple did, but sooner and on a larger scale. They chose not to because it would disrupt their profit models.
Why are Nintendo & Sony's developer costs so high, when they want to attract as many as possible?
Why are the licensing agreements almost Draconian? (I'm looking at you Nintendo.)
WTF is up Sony trying to copy Nintendo's DS model, by releasing only modest upgrades to it's PSP line? The reason why people first loved the PSP was that it was a radical change from the DS, and offered the gamer real power and options.
My last question, is why did it take Apple to really push the idea that it's mobile gaming? For example, if you turn the device off, or switch apps, you should be able to resume the game where you left it. Not on most DS and PSP games. If you didn't save your progress, guess what? You're screwed.
I'm not going to complain and belittle Apple for their efforts. Nintendo and Sony, have had a captured audience, years of experience and the framework to do the same thing Apple did, but sooner and on a larger scale. They chose not to because it would disrupt their profit models.
Why are Nintendo & Sony's developer costs so high, when they want to attract as many as possible?
Why are the licensing agreements almost Draconian? (I'm looking at you Nintendo.)
WTF is up Sony trying to copy Nintendo's DS model, by releasing only modest upgrades to it's PSP line? The reason why people first loved the PSP was that it was a radical change from the DS, and offered the gamer real power and options.
My last question, is why did it take Apple to really push the idea that it's mobile gaming? For example, if you turn the device off, or switch apps, you should be able to resume the game where you left it. Not on most DS and PSP games. If you didn't save your progress, guess what? You're screwed.
Posted: Mar 24th 2010 2:37PM (Unverified) said
I don't understand why people are not willing to admit that certain games are almost meant for a touch interface. Any time management games (airport mania, sally's series, dinner dash), adventure games (monkey island, broken sword), puzzle/card games (stoneloops, solebon, brain challenge, even tetris), tower defense games (plants vs. Zombies) and iPhone unique games such as Rolando and Spore Origins ... they all work really well with touch and in no way do you feel limited by the control scheme. Even as a Rock Band owner, I thought the iPhone version was a unique experience and take on the series. Some of the ports aren't half bad too, Street Fighter, GTA or original Wolfenstein for example. Yes, most of this caters to casual pickup-and-go gamers, but we have already seen how successful that model can be.
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