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Revenue from iOS, Android gaming apps now three times greater than portable consoles

post #1 of 16
Thread Starter 
The trend that's seen portable gaming shifting largely to devices like Apple's iPhone continues apace, according to a new report that pegs revenue from gaming on iOS and Android devices at three times the size of revenue on dedicated portable gaming consoles.

gaming


In the first quarter of 2013, revenues for iOS gaming rose significantly, while revenues for Nintendo and Sony's dedicated portable consoles dropped due to seasonal effects, according to a study published by IDC and App Annie. The study's findings do not include ad revenue.

Apple's iOS led in overall gaming revenue generation for the quarter, outpacing Google's Android in as it already does in terms of overall revenue. Google's Play Store continued to see its revenues grow, though, and it is expected that Google Play will move ahead of gaming-optimized handhelds in terms of revenue generation some time in the second quarter.

The study found that gaming still forms the foundation for both app stores. In both the App Store and Google Play, games accounted for roughly 40 percent of all downloads, up slightly from the quarter previous. The report has games making up roughly 70 percent of iOS App Store spending and more than 80 percent of Google Play spending.

The study's findings put into stark relief the growing importance of mobile devices in the gaming segment, a trend that has the traditional gaming companies scrambling to adjust. The emergence of Apple's iPhone on the gaming scene sparked an exodus of casual gamers from the dedicated portable console market, as those consumers found that one device could handle both their gaming and communication needs.

In response, portable gaming's two giants, Sony and Nintendo, have been looking to retool operations. Sony recently cut the price of its PlayStation Vita portable console, in the hopes that doing so would attract more buyers in its native country of Japan. The electronics giant also courted developers for the PS Vita by offering free developer tools.

Nintendo has fared better in the portable segment after cutting the price on its 3DS console. The shift toward devices like Apple's iPad, though, has meant trouble for Nintendo's new Wii U console. In response, the longtime gaming fixture has also begun courting developers in hopes that they will bring their best selling smartphone games to the touch-capable Wii U.
post #2 of 16
Headline is technically accurate, but makes it sound like Android is doing better than portable consoles already. It's not--yet--only iOS is.
post #3 of 16
Quote:
Originally Posted by nagromme View Post

Headline is technically accurate, but makes it sound like Android is doing better than portable consoles already. It's not--yet--only iOS is.

yes, but that's only true for 1Q13. i wish they'd adjust the chart and get that wording right.
post #4 of 16
Quote:
Originally Posted by nagromme View Post

Headline is technically accurate, but makes it sound like Android is doing better than portable consoles already. It's not--yet--only iOS is.

In addition, I'm skeptical of the data. Those swings are massive for them to occur over just one quarter.

It could be that the consoles do better in the Christmas quarter because their games are so much more expensive and always drop off that much in the 1st quarter. WIthout comparative data, it's impossible to say what, if anything, this means.
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post #5 of 16

I always laugh a bit when people try to make a trend out of two or three points of data.  That said I'm surprised to see the numbers for dedicated device gaming fall so sharply in one quarter.  Wonder what could be the reason for that drop off.  There are certainly plenty of new games out to enjoy on dedicated devices.

 

Personally, I probably play an equal amount on iOS and dedicated mobile game devices.  That's sure to change in favor of dedicated devices next month when some exceptionally top notch games are coming out.

post #6 of 16
Well, the numbers say it all. 
If any android fan is telling you the iPad is only for play, tell him/her that Google Play has 20% of its income from non gamers while iOS has 30%.
For myself I use the iPad for lots of work - things that I had to use a laptop for before. Writing articles, making music, doing interviews, you name it.
 
 
post #7 of 16
Quote:
Originally Posted by jragosta View Post

In addition, I'm skeptical of the data. Those swings are massive for them to occur over just one quarter.

It could be that the consoles do better in the Christmas quarter because their games are so much more expensive and always drop off that much in the 1st quarter. WIthout comparative data, it's impossible to say what, if anything, this means.

Having lived and worked in Silicon Valley for some time (worked in the same building as Activision), the gaming industry is highly cyclical and dependant upon releases of "the next big thing game."
post #8 of 16
Quote:
Originally Posted by jragosta View Post

In addition, I'm skeptical of the data. Those swings are massive for them to occur over just one quarter.

It could be that the consoles do better in the Christmas quarter because their games are so much more expensive and always drop off that much in the 1st quarter. WIthout comparative data, it's impossible to say what, if anything, this means.

I agree. I'm sure all sorts of products that are popular during the holiday quarter also have massive drops afterwards.
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
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post #9 of 16

Cue the "hardcore" gamers. Any arguments left, boys?

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post #10 of 16
Should Android be "winning" with these numbers too? Let me guess iOS is a toy while Android is for serious work. /s
post #11 of 16
Quote:
Originally Posted by MacBook Pro View Post

Having lived and worked in Silicon Valley for some time (worked in the same building as Activision), the gaming industry is highly cyclical and dependant upon releases of "the next big thing game."

True. I also know that the death of PC gaming is regularly predicted about once every 7 years or so.

"Apple should pull the plug on the iPhone."

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"Apple should pull the plug on the iPhone."

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post #12 of 16
Quote:
Originally Posted by jungmark View Post

Should Android be "winning" with these numbers too? Let me guess iOS is a toy while Android is for serious work. /s

Most meatball subs who "dump their iPhone for a Galaxy Shiny Thing" run around all day showing off the "cool stuff" their new gadget can do, and it's neither games nor serious work. Stuff like animated wallpapers and 3D spinning swoopy shells, or NFC playlist sharing ("WHEE!") or just checking Facebook and Twitter. Or running benchmarks to show off the gigahertzes. Or rooting so they can hack a Bourne shell. There's no real work going on (what are they going to do? Write a novel or finish a spreadsheet?) and the games are a notch down from the games on iOS. And we know they aren't using their phones to surf the web (not without allegedly changing the user-agent LOL). My conclusion? It's all about geek cred.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

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post #13 of 16
Wake up Apple! We need apps on TV!
post #14 of 16
Quote:
Originally Posted by jragosta View Post


In addition, I'm skeptical of the data. Those swings are massive for them to occur over just one quarter.

It could be that the consoles do better in the Christmas quarter because their games are so much more expensive and always drop off that much in the 1st quarter. WIthout comparative data, it's impossible to say what, if anything, this means.

 

"Sony's dedicated portable consoles dropped due to seasonal effects"

post #15 of 16

All would need to happen is to have "Leisure Suit Larry" run on the portable devices and Apple would be doomed due to not approving it for iOS.

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #16 of 16
Number 1 reason games do way better on mobile platforms rather than consoles, is they are way less expensive
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