The Continued Success of the iPhone Gaming Industry
Despite the economic downturn, the gaming industry – at least for iPhones and iPod Touchs -is still going strong, according to the WSJ. Silicon Alley Insider points to some key findings:2,000+plus iPhone games are currently available for download, either for free or purchase. iPhone and iPod touch owners have downloaded around 50 million games. (They make up 25% of the 200 million apps downloaded from the Apple app store, and most downloads are free.) Simon Jeffery, president of Sega (U.S.), claims that “games sold via the App Store are the most profitable in terms of any of the formats we work on”. This is despite Sega’s slowing sales of its $10 Super Monkey Ball” (a game that Apple has heavily promoted, which sold 300,000 copies during the app store’s first month, and 200,000 copies over the last three months.) “It feels to me like there’s a real threat to their [Sony’s and Nintendo’s] business from the iPhone,” said Neil Young, who used to work for Electronic Arts (ERTS) and now runs an iPhone gaming startup called Ngmoco.
We agree that the iPhone is a serious gaming threat to the Sony (SNE) PSP and Nintendo (NTDOY) DS, especially for non-hardcore gamers. Why? Because before we owned an iPhone, we were considering buying both of those game-focused gadgets. And now we aren’t.