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iPhone, iPod taking revenue from Nintendo and Sony

updated 08:20 pm EDT, Mon March 22, 2010

Apple devices carve out 19pc gaming revenue

Apple in one year has already claimed almost a fifth of all portable gaming revenue for itself, Flurry found in a new study this evening. The iPhone and iPod touch made up 19 percent of portable game revenue in all of 2009 where it had claimed five percent just a year earlier. At the same time, Nintendo dropped slightly to 70 percent, and Sony's PSP had its share almost halved, plunging from 20 percent to 11 percent.

The nearly fivefold spike was enough to have Apple represent 5 percent of all video game revenue, regardless of the platform, and eat into sales of TV consoles. Other portables still grew year-over-year to 24 percent of video game revenue, but systems like the Microsoft Xbox 360, Nintendo Wii and Sony PS3 dropped eight points to 71 percent.

Apple's success comes in spite of lower average prices and may hide a much larger gain in actual influence, Flurry added. Where an iPhone game typically costs $10 or less, many DS and PSP games cost $30 to $40 and hide lower sales volume in their prices. Gaps in system prices have also closed considerably as an iPod now sells for $199, or just above the PSP and much closer to the DS Lite or DSi. The two factors could lead to younger audiences switching outright rather than simply getting an iPod or iPhone as a supplement.

Sony's attempt to mimic the iPod touch strategy with the PSP Go has led to particularly dismal sales as its high price and other design choices haven't helped its position.

Analysts also believe the iPad could be even more of a danger as its strong early developer support and added power could damage not just handhelds but regular console gaming, where Microsoft is relatively isolated from the damage done to Nintendo and Sony.

"Unless the other major video game platform providers... respond accordingly, Apple could continue to roll up video game market share," the researchers warned.





By Electronista Staff
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Comments

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    +3

    Well the supposedly hard-core gamers

    will continue to say that there's no way they're giving up their physical buttons for a touch screen gaming machine. What percentage of these users represent, I have no idea. Maybe they're just the vocal minority.

    Apple may not crushing the DS and PSP platforms, but they're gaining decent revenue through their growing market share.

  1. JeffHarris

    Fresh-Faced Recruit

    Joined: Oct 1999

    +4

    Ask the Parents

    Why is there any wonder just WHY iOS devices are on the rise while the Sony and Nintendo gaming toys are on the decline?

    My guess would be that the majority of purchasers of DS and PSPs are by parents for their kids.

    If I were a parent buying something for my kid and had the choice between a one-trick-pony gaming toy and a device like the iPod touch that can actually do many useful things, like even help with school work, it's an absolute no-brainer. I'd drop my dough for an iPod touch with barely a second thought.

    If the kid balked, I tell her/him to get a job, save up and buy a PSP or DS.... just like I had to do.

  1. Capt Greedle

    Fresh-Faced Recruit

    Joined: Mar 2010

    +5

    Interesting what this article doesn't say

    Like that Flurry sells iPhone consulting and developer applications and is a partner with AT&T as well. Hope this was good advertising for them.

  1. legacyb4

    Mac Elite

    Joined: May 2001

    +2

    My friend's daughter

    Who turned 12 sometime late last year ditched her Gameboy and instead of graduating to what should have been a natural progression to a new DSi, instead saved up her babysitting money to spring for a Touch. Watching her use it, it's clear that kids her age are fairly sophisticated and a one-off game machine just isn't going to cut it any more...

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -1

    Re: Ask the parents

    If I were a parent buying something for my kid and had the choice between a one-trick-pony gaming toy and a device like the iPod touch that can actually do many useful things, like even help with school work, it's an absolute no-brainer. I'd drop my dough for an iPod touch with barely a second thought.

    Right. Help with schoolwork. I'm sure that's exactly what the kids would say, too. Same reason they 'need' a computer. And yet, they'd spend all their time playing games and facebooking.

    As a parent, it would be wiser to get the one-trick pony, since you would know what they were doing on it at least.

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