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iPhone, iPod touch carve 19% gaming share from Sony, Nintendo

post #1 of 34
Thread Starter 
Over the last year, Apple's share of the US video game software market has jumped 500%, eating into the growth of console games while also putting pressure on mobile gaming leaders Nintendo and Sony.

Market share figures published by Flurry Analytics indicate that Apple's share of revenues in the entire US video game software market jumped from 1% to 5%, even as the entire market shrank year over year from $11 billion in 2008 to $9.9 billion in 2009.

"Controlling 5% revenue of a $10 billion industry in just a year and a half is significant," wrote Peter Farango, Flurry's vice president of marketing. "From a market share perspective, console games lost ground to portable platforms and iPhone.

"While the downturn in the economy may have dampened sales of the more expensive console games category, there is no denying that iPhone has generated substantial revenue and entered strongly into a mature industry."



Apple now owns 19% of portable gaming

When excluding console games such as the Nintendo Wii, Sony PlayStation 3 and Microsoft's Xbox 360 in order to focus on the portable gaming market, Apple's competitive share looks even better. Over the last year, the company's iPhone App Store games grew from 5% to a 19% share of the entire American portable gaming market.

The portable market didn't recede along with the economy as console games have; instead, portable games including the iPhone and the Nintendo DS and Sony PlayStation Portable collectively grew from a $2.25 billion market in 2008 to become a $2.55 billion market in 2009.

Apple's rise in gaming software revenue effectively cut Sony's struggling PSP business in half in terms of market share by revenue, and shaved Nintendo's leadership position down from 75% to 70%.



iPad expected to help maintain gaming momentum

Apple's iPad, set for release early next month, is expected to help the company extend its assault on traditional portable gaming devices. The iPad runs existing games designed for the iPhone and iPod touch, but also enables developers to create new and more sophisticated titles designed to make full use of its larger screen.

"With companies like Electronic Arts and Gameloft joining Apple on stage during its January unveiling of the iPad, the tablet device will enjoy elite game publisher support on day one," Farango wrote.

In a previous report, Flurry "determined that more than one third of iPhone game developers come from the traditional gaming industry," indicating that "Apple has already established broad third-party game publisher support."

"Unless the other major video game platform providers (i.e., Sony, Nintendo and Microsoft) respond accordingly," the report concluded, "Apple could continue to roll up video game market share."
post #2 of 34
Given the really low ASP of iPhone games, if you did market share by app/game unit sales count it would be truly staggering - 3-5x the revenue share I would guess...

Oh... and 1st (childish, I know)
post #3 of 34
Nintendo DS who?
post #4 of 34
Flurry Analytics??

The company that sells applications and services to iPhone app developers? The same company that partners with AT&T? Well, its a good thing their research bolsters their own position, I'm sure they were relieved that it didn't go any other way.

Seriously, this is about a dumb a study as I've ever heard. Our family owns a DS, a Mac, a PC, an iPhone, an iPod Touch, and a Wii. Everybody's getting more of our money, and we certainly didn't spend as much on the iPhone offerings as we did on Mario and Pokemon.
post #5 of 34
The market for PC games is declining and is now around 1 billion a year.

Apple iPhone must be getting close to catching up.

We can expect to see more PC game publishers developing new and porting titles to the iPhone OS platform
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post #6 of 34
A long time ago Apple was advised to pay attention to the gaming market, but it failed to do so.

Now it's realized it's mistake. Of course Steve wasn't in charge then, so that makes it alright.


Yep, the iPad will make a nice child's toy; a safe, controlled and Disney like device.

Wonder if it PG's the internet by default too?
post #7 of 34
Quote:
Originally Posted by Woohoo! View Post



Yep, the iPad will make a nice child's toy; a safe, controlled and Disney like device.

Wonder if it PG's the internet by default too?

Your iPad-trolling isn't quite working.

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Looks familiar, doesn't it?

http://www.esrb.org/ratings/ratings_guide.jsp


So much for Disney.
post #8 of 34
Quote:
Originally Posted by Woohoo! View Post

A long time ago Apple was advised to pay attention to the gaming market, but it failed to do so.

Now it's realized it's mistake. Of course Steve wasn't in charge then, so that makes it alright. ...

Hey Troll.

I don't know why I bother, but you are totally wrong about everything here.

- The last time Apple specifically tried to enter the gaming market was when Steve *wasn't* in charge.
- Apple didn't start "paying attention" to the gaming market, the success there caught them by surprise as pretty much every executive has said.
- Apple has not "changed their attitude" about games, they don't really have an attitude to change.
- Apple has not changed anything they do in regards the gaming market beyond what they've been doing for years.

(Your last two statements are more or less "fantasy insults" so I won't respond to or quote them.)
post #9 of 34
Quote:
Originally Posted by Capnbob View Post

Given the really low ASP of iPhone games, if you did market share by app/game unit sales count it would be truly staggering - 3-5x the revenue share I would guess...

Oh... and 1st (childish, I know)

That's exactly my thought. $10 is considered very cheap for the other leading game systems but very expensive for an iPhone game.
post #10 of 34
Quote:
Originally Posted by hill60 View Post

The market for PC games is declining and is now around 1 billion a year.

Got a link to back that up? Blizzard alone regularly posts over $1 billion in revenue.
post #11 of 34
He means 1B profit, though I don't know if he's right.
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post #12 of 34
Quote:
Originally Posted by hill60 View Post

The market for PC games is declining and is now around 1 billion a year.

Apple iPhone must be getting close to catching up.

We can expect to see more PC game publishers developing new and porting titles to the iPhone OS platform

The portable market as a whole represents around 1 billion. The iPhone OS represents a mere 20% of that. Thus not even close the PC market.
Also not even close to the Nintendo DS either.
post #13 of 34
Yay for iPhone gaming. As long as Apple doesn't banish the game developers they their devices have no equals, because not only can you play games, but have an awesome all around computer in your pocket. DS can't do that and PSP does very poorly.
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post #14 of 34
if Apple would just wirelessly link iPod games to your big screen TV display via AppleTV, it would really carve out a solid game base for the long term. simpler than the Wii with all its (expensive) controller accessories. continuous game play at home or elsewhere. and much cheaper games, yet more varied and innovative.

(this is for casual and family games, not "hard core" XBox/PS3 war and gore stuff. in other words, for grownups.)

why the iPod? games designed for its 4:3 display at 1024x768p (or 1024x576p for letterboxed 16:9 content that your TV will zoom to full screen with no bars) will look really good on an HDTV, whereas games with far lesser iPhone/touch display specs just can't.

of course, you could also display lotsa other stuff too. like web browsing or any app.

this is the 'killer app' that AppleTV really needs.
post #15 of 34
Quote:
Originally Posted by Gazoobee View Post

.
- Apple has not changed anything they do in regards the gaming market beyond what they've been doing for years.

Oh, I don't know this is a pretty public change in attitude from them towards gaming. A positive one, but still a significant change.
post #16 of 34
I'm a huge Apple fan and am regularly impressed by how many things they get right, so I'm not mindlessly bashing, but I have a really hard time accepting these figures. 5% of all computer game revenues just doesn't seem plausible. It would be interesting to see the methodology.
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post #17 of 34
Quote:
Originally Posted by jragosta View Post

I'm a huge Apple fan and am regularly impressed by how many things they get right, so I'm not mindlessly bashing, but I have a really hard time accepting these figures. 5% of all computer game revenues just doesn't seem plausible. It would be interesting to see the methodology.

US market only.
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post #18 of 34
Quote:
Originally Posted by extremeskater View Post

Apple isn't even remotely close to the DS in terms of sales.

per Wikipedia, from its 2004 intro to the end of 2009, 125 million DS and DS Lites had been sold worldwide. 45 mil in the Americas, 30 mil in Japan, and 30 mil elsewhere. 47 mil of those sales happened by June 30 2007, so the other 78 mil were sold since then. 29 mil were sold in 2009 alone.

from its June 2007 intro to the end of 2009, Apple sold about 75 mil iPhones and iPod touches. somewhat more than half in the US. the 2009 sales are 21 mil iPhones plus an unidentified number of touches, adding up to something close to 40 mil for both.

not to quibble over words, but 78 to 75 in the same 2.5 year time frame is certainly "close." even 125 to 75 grand total is "remotely close." but the clincher is, last year in 2009 the iPhone/touch definitely outsold the DS by a substantial margin, and there is no credible reason to believe that is not continuing currently.

but by all means, don't let the facts get in your way, even easy to find ones like these.
post #19 of 34
Quote:
Originally Posted by pixelcruncher View Post

Flurry Analytics??

The company that sells applications and services to iPhone app developers? The same company that partners with AT&T? Well, its a good thing their research bolsters their own position, I'm sure they were relieved that it didn't go any other way.

Seriously, this is about a dumb a study as I've ever heard. Our family owns a DS, a Mac, a PC, an iPhone, an iPod Touch, and a Wii. Everybody's getting more of our money, and we certainly didn't spend as much on the iPhone offerings as we did on Mario and Pokemon.

Nothing personal but that isn't a particularly smart comment - your family experience has nothing to do with market trends. Assuming that Flurry have done the required work to release a reasonably solid market research report you have nothing to doubt and certainly not based on your personal experience. I have several consoles and have only bought iPhone games (and Wii Resort) in the past year. My personal experience doesn't matter either.
post #20 of 34
Quote:
Originally Posted by extremeskater View Post

Yes this is clearly big news. Nintendo still holds 70% of the market and if you take out all major console gaming systems and narrow it down to two handhelds and Apple they still come in a third out of three.

So what they are saying is in gaming Apple comes in last no matter what systems you add in or take out. Okay I got it now.

Apple isn't even remotely close to the DS in terms of sales.

Mindless trolling again? What's happened? The results are easy to read...

Apple has 5% of overall US gaming revenue (non-PC it seems) - small but not bad from just the iXXX platform
It has 20% of US handheld gaming revenue - making it #2 (ahead of PSP)
If one multiplies the Apple $ share by the difference in ASP (Nintendo $25, Apple $5-10) then it shows that Apple is probably pretty close in terms of unit sales to Nintendo for the DS which has 3.5X its revenue - not bad in 2.5 years from scratch.

If you need any help translating basic numbers again, don't hesitate to ask someone else.
post #21 of 34
Of course AI would post this. Its irrelevant just like it always is.

Apple is still at the bottom of the barrel for gaming and will always be. They will never topple Nintendo, on any front. They might overtake Sony in the states simply because the PSP is overpriced for what it is, and is being dominated by Nintendo in marketshare and mindshare.

Fact is, revenue on these devices is dictated by content...just like consoles.

Apple has a nice thing going for them with their platform. Its an all in one device but the fact is its not a serious gaming device, and its not perceived as such. The content clearly pales to compare to whats available on a gaming console, thus it poses ZERO threat to Microsoft, Sony or Nintendo on that front.

5% of revenue is horrid. And its only the US...My how quickly that will fall off when we factor in everyone else...

Food for thought. There are roughly 45 Million DS floating around in the US and 40+ Million iPhone OS devices (Admob states roughly half iphone OS devices are used here) So why doesnt Apple have a bigger slice of the market share?
post #22 of 34
Quote:
Originally Posted by Alfiejr View Post

(this is for casual and family games, not "hard core" XBox/PS3 war and gore stuff. in other words, for grownups.)

WTF are you suggesting unless a game is something in the realm of Nintendogs or Cooking Mama then it's not for grownups? Thats pure stupid dude, I'm sorry but iPhone has one of the worst game catalogs I have seen in my 14 going on 15 years (started at 5 years old) playing video games. The only games worth getting on there are Final Fantasy, Sonic the Hedgehog, Megaman, Resident Evil, and some Gameloft stuff, other than that its bullcrap. I'm not a fan of war and gore games but for you to suggest that casual family games are really the only games worth playing is asinine. There are plenty of good action/adventure, RPG, and strategy games that can be enjoyed by almost every age group and most of them are not available for the iPhone OS platform.

Quote:
Originally Posted by Alfiejr View Post

per Wikipedia, from its 2004 intro to the end of 2009, 125 million DS and DS Lites had been sold worldwide. 45 mil in the Americas, 30 mil in Japan, and 30 mil elsewhere. 47 mil of those sales happened by June 30 2007, so the other 78 mil were sold since then. 29 mil were sold in 2009 alone.

from its June 2007 intro to the end of 2009, Apple sold about 75 mil iPhones and iPod touches. somewhat more than half in the US. the 2009 sales are 21 mil iPhones plus an unidentified number of touches, adding up to something close to 40 mil for both.

not to quibble over words, but 78 to 75 in the same 2.5 year time frame is certainly "close." even 125 to 75 grand total is "remotely close." but the clincher is, last year in 2009 the iPhone/touch definitely outsold the DS by a substantial margin, and there is no credible reason to believe that is not continuing currently.

but by all means, don't let the facts get in your way, even easy to find ones like these.

These statistics don't mean anything in terms of gaming, because the DS sales figures represent its units sold as a GAMING DEVICE iPhone and iPod Touch's do not. Not everyone that gets an iPhone or iPod Touch plays games, but everyone that gets a Nintendo DS plays and buys games for it. If you want to compare the two you compare them based on their market value in the gaming market not by how many units sold because one is a specific gaming device purchased for one reason and one reason only while the other is not and in that respect the iPhone OS platform is nowhere near the DS
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post #23 of 34
Quote:
Originally Posted by Quadra 610 View Post

Nintendo DS who?

DS is still the best handheld in terms of game quantity and quality. This is from someone who has all three, PSP, DS and iPhone. Though recently the iPhone has been getting high quality games, so in a year or two the game might change.

Nintendo is preparing its new handheld, will be announced in E3:
http://www.nintendo.co.jp/ir/pdf/2010/100323e.pdf

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post #24 of 34
Quote:
Originally Posted by Dreadkid08 View Post

WTF are you suggesting unless a game is something in the realm of Nintendogs or Cooking Mama then it's not for grownups? Thats pure stupid dude, I'm sorry but iPhone has one of the worst game catalogs I have seen in my 14 going on 15 years (started at 5 years old) playing video games. The only games worth getting on there are Final Fantasy, Sonic the Hedgehog, Megaman, Resident Evil, and some Gameloft stuff, other than that its bullcrap. I'm not a fan of war and gore games but for you to suggest that casual family games are really the only games worth playing is asinine. There are plenty of good action/adventure, RPG, and strategy games that can be enjoyed by almost every age group and most of them are not available for the iPhone OS platform.



These statistics don't mean anything in terms of gaming, because the DS sales figures represent its units sold as a GAMING DEVICE iPhone and iPod Touch's do not. Not everyone that gets an iPhone or iPod Touch plays games, but everyone that gets a Nintendo DS plays and buys games for it. If you want to compare the two you compare them based on their market value in the gaming market not by how many units sold because one is a specific gaming device purchased for one reason and one reason only while the other is not and in that respect the iPhone OS platform is nowhere near the DS

This isn't a gaming device that isn't a gaming device... blah blah blah

Get a grip, this is the same pish you here between xbox and ps3 fanboys. 'PS3 is bought as only a blu-ray player by some'

Put it this way, these are figures by REVENUE. Not by units sold. Its the same way they cover the fact that apple doesnt sell many macs as PC vendors do, but apple commands a large part of the revenue. In this instance the revenue flatters nintendo. Apple sells games at roughly 10% of the cost of a DS game so nintendo are clocking up 90% more revenue per game sold on the ds.

It doesnt matter what you think people buy the hardware for its the install base that publishers look at. Thats their potential market.
post #25 of 34
Quote:
Originally Posted by pixelcruncher View Post

Flurry Analytics??

The company that sells applications and services to iPhone app developers? The same company that partners with AT&T? Well, its a good thing their research bolsters their own position, I'm sure they were relieved that it didn't go any other way.

Seriously, this is about a dumb a study as I've ever heard. Our family owns a DS, a Mac, a PC, an iPhone, an iPod Touch, and a Wii. Everybody's getting more of our money, and we certainly didn't spend as much on the iPhone offerings as we did on Mario and Pokemon.

er and your N of 1 is so representative how exactly?
post #26 of 34
Quote:
Originally Posted by Capnbob View Post

Given the really low ASP of iPhone games, if you did market share by app/game unit sales count it would be truly staggering - 3-5x the revenue share I would guess...

Oh... and 1st (childish, I know)

hey mr number one
hooray !!!

also childish

millions of game makers can now have a voice for there creations on the app stores

the big 3 in gaming is now the big 4

and 2 dollar games are not that bad

HALO HALO on the ipad will be magic !!!


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post #27 of 34
Quote:
Originally Posted by Aizmov View Post

DS is still the best handheld in terms of game quantity and quality. This is from someone who has all three, PSP, DS and iPhone. Though recently the iPhone has been getting high quality games, so in a year or two the game might change.

Nintendo is preparing its new handheld, will be announced in E3:
http://www.nintendo.co.jp/ir/pdf/2010/100323e.pdf

ds who ????

the DS sucks up against the ipod touch

the psp is ok i guess
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post #28 of 34
Where's that quote from .... some ceo ... that went on to say, "we don't consider Apple's iPhone / iPod Touch a serious threat".... I'm all but positive that ISN'T the actual quote used however it was the gist of what the man wanted to say. It wasn't too long ago I don't think... (last summer/fall?)
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post #29 of 34
Quote:
Originally Posted by extremeskater View Post

Is it mindless trolling that Nintendo still holds 70% of this market. Could you not read that part. Apple isn't even close to Nintendo. Try reading the entire article.

It doesn't matter that Apple went from 1-5% the fact is they still aren't even close to Nintendo which was my point. Get a clue.

"and shaved Nintendo's leadership position down from 75% to 70%. "

WOW down to 70%. For the exception of the iPod in over 30 years when has Apple ever held 70% market share on anything?

Apple breaks into mid single digits and you guys losing it with joy. Not to mention Apple is compteting with a very outdated device that has been out for many years and its still the leader.

Do you own a DS or a PSP. Do you own a console, do you even use any of these devices or have a clue what you are talking about? If you did you would know iPhone games aren't even in the same league as these other devices unless 1.99 games is enough for you.


The Nintendo DS was released in Nov. 2004 I believe.

The iPhone came out in June 2007 and the Touch around 3 months later.

Both the Apple products cost considerably more and the phone requires a 2 year contract also.

But like what has been said, if you compare sales from when the original phone came out (again, with its FIVE HUNDRED TO SIX HUNDRED DOLLAR PRICE), sales are not THAT far off of each other.

But hey, good attempt at trolling.
post #30 of 34
Quote:
Originally Posted by extremeskater View Post

WOW down to 70%. For the exception of the iPod in over 30 years when has Apple ever held 70% market share on anything?

Apple has 91% of the market in $1000+ PC sales.

http://www.betanews.com/joewilcox/ar...NPD/1248313624

Apple has 69% of all digital music sales.

http://www.loopinsight.com/2009/08/1...al-music-sold/

Of course, I am generally with Mark Twain on this one. "There are three kinds of lies: lies, damned lies, and statistics."
post #31 of 34
Quote:
Originally Posted by extremeskater View Post

Is it mindless trolling that Nintendo still holds 70% of this market. Could you not read that part. Apple isn't even close to Nintendo. Try reading the entire article.

It doesn't matter that Apple went from 1-5% the fact is they still aren't even close to Nintendo which was my point. Get a clue.

"and shaved Nintendo's leadership position down from 75% to 70%. "

WOW down to 70%. For the exception of the iPod in over 30 years when has Apple ever held 70% market share on anything?

Apple breaks into mid single digits and you guys losing it with joy. Not to mention Apple is compteting with a very outdated device that has been out for many years and its still the leader.

Do you own a DS or a PSP. Do you own a console, do you even use any of these devices or have a clue what you are talking about? If you did you would know iPhone games aren't even in the same league as these other devices unless 1.99 games is enough for you.

I have all the clues I need - it is you who seem to be fumbling... No-one here is claiming "Nintendo is doomed", they clearly have a strong lead in the market and have clearly innovated very well with the DS (in its time) and the Wii.

However, Nintendo is losing market share by revenue (a bit) and Apple's move from 1-5% overall and 5-19% in handheld $s is meaningful in 1 YEAR. However, the share Nintendo is losing in unit sales is much more significant since to the majority of the population (non-gamers) a game is a game whether it is MarioKart or FlightControl. In terms of games sold, the iPhone/iTouch platform is probably close to parity with the DS. That is major, though it doesn't doom Nintendo either since it has only eroded 5% from their $ share.

Yours and others' key point appears to be that Apple will not dent the hardcore gaming market. That may be true (although many hardcore titles appear to be released for the iPhone) but Apple is clearly extending the market in casual gaming. My mum buys and plays games on her iPhone and wouldn't dream of spending $ one on any dedicated gaming hardware which is the case with most adults I know. Both companies can succeed if these 2 markets remain fairly separate. It seems to be Sony who are being squeezed badly in handhelds.

Someone else already broke your weak ass claim about Apple never "owning" any markets - and also, they owned the home computer market in the late 70s/early 80s with the IIe. Its not like Nintendo has done anything outside of the core gaming category and pretty much failed in even in consoles after the SNES and before the Wii. Let's face it, Nintendo is only a powerhouse again because of the Wii which is nowhere near a hardcore gaming device. It is families and old-folks homes that have put Nintendo back on top of Sony/MS.

Apple competes with what is out there. Nintendo announced a new super cool handheld this morning, we'll see how that goes. If the games are still $20-50, then it will only be a hardcore gamer device (again) and drive lots of $s but still miss the emerging casual market that the iPhone/iTouch is owning right now, just like Sony/MS missed the whole Wii market.

I have several consoles and frequently buy DS games for kids so I understand plenty. I know that the younger kids I buy for (ages 4-9) seem to enjoy the iPhone/iTouch more than their DS and are very happy with several $1.99 games (they like getting more games, regularly, rather than 1 or 2 expensive DS games at their birthdays). Many people find the cheap iPhone games just dandy and your personal disdain for them is irrelevant.

Thanks for asking...
post #32 of 34
Quote:
Originally Posted by mknopp View Post

Apple has 69% of all digital music sales.

You should add the word distributed, or downloaded after digital, afterall CDs are digital music
post #33 of 34
no word games over definition of the market or interpretation of stats can change the simple fact that in the short space of two years the new iPhone/touch has captured a significant chunk of the casual game market, both hardware and third party software. which was the point of the AI article.

both Sony and MS laughed off the Wii when it was first introduced. it was inferior in various ways compared to the XBox and PS2, and certainly now compared to the XBox360 and PS3 (neither of which is only a game console btw). nonetheless, it took over market leadership from them both thanks to a superior UI - and now they are trying to catch up years late with Natal and Move.

DS and PSP fans here and elsewhere can laugh off the iPhone/touch/iPod too if they want, as not being pure game devices etc. except now, also with a superior UI, Apple is already outselling them, and the new PSPGo in particular is a flop (Sony screws up again). if the iPod is a really good casual game platform - i dunno, have to wait and see - that could cement Apple's lead, making the iPhone group the Wii of this market segment, casual/mobile games.

the real killer feature of the iPhone group isn't really its UI, though that is part of it. it's really the much, much lower prices of the games. Sony and Nintendo's high-priced in-house-games business model is collapsing right now before their and our eyes. it's a bloodbath. only hard core game addicts are going to pay $40 for a portable-device game anymore.
post #34 of 34
Quote:
Originally Posted by mknopp View Post

Apple has 91% of the market in $1000+ PC sales.

http://www.betanews.com/joewilcox/ar...NPD/1248313624

Apple has 69% of all digital music sales.

http://www.loopinsight.com/2009/08/1...al-music-sold/

Of course, I am generally with Mark Twain on this one. "There are three kinds of lies: lies, damned lies, and statistics."

nice

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