iPhone, iPod touch capture US video game market share
TweetFollow Us on Twitter

iPhone, iPod touch capture US video game market share

More than 30,000 games have been released in the iPhone App Store since its launch in July 2008, according to the Flurry (http://www.flurry.com). With titles that consistently dominate the Top Paid and Top Grossing lists, there's no question that the games category is the most lucrative category in the Apple Apple Store, says the research group.

A new Flurry report looks at how Apple has affected the market share of U.S. video game and portable game revenue since the introduction of games sold through the Apple App Store for the iPhone and iPod touch. Using publicly available market data, provided by NPD (mostly through Gamasutra's Behind the Numbers series), Flurry calculated U.S. console and portable game software sales for 2008 and 2009.

The research group also estimated Nintendo DS and Sony PlayStation Portable game software sales, which make up the significant majority of the portable category, in order to compare these to iPhone game sales. Flurry estimates iPhone game sales using a combination of data made available by Apple and using ratios and calculations from an aggregated set of data that the research group tracks through our analytics service.

Flurry began with a look at the U.S. gaming market, which NPD defines primarily as console and handheld. Computer gaming, which has been declining over the last decade, and is currently approximately 5% of the total U.S. market, is not included. Also, for this analysis, Flurry ignored online gaming revenue (e.g., virtual goods and subscription fees from social networking games and massively multi-player online games).

NPD Group shows that combined U.S. console and portable software revenue was approximately US$11 billion and $9.9 billion in 2008 and 2009, respectively. After estimating portable sales, Flurry was able to back into console revenues. The research then added their estimates for iPhone game revenue, detailed later, which total $115 million and $500 million for 2008 and 2009, respectively.

With these figures, Flurry's main finding is that the iPhone (and iPod touch) is a gaming platform to be reckoned with. Controlling 5% revenue of a $10 billion industry in just a year and a half is significant. 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's no denying that iPhone has generated substantial revenue and entered strongly into a mature industry.

More interesting to us than iPhone's impact on U.S. gaming was its impact on the portable category, which Flurry estimates totaled $2.25 billion and $2.55 billion in 2008 and 2009, respectively. Michael Pachter, managing director at Wedbush Morgan Securities and a prominent video game analyst, suggests "iPod touch is the most dangerous thing that ever happened" to game publishers.

As prices come down for the iPod touch, and games sold through the Apple App Store continue to have lower price points, more of the young gaming generation may switch to Apple devices over Sony PSP and Nintendo DS for gaming, says Flurry. Further, Apple has squarely positioned the iPod touch as a gaming machine.

From what the research group calculates, consumers are downloading iPhone games in droves. Comparing iPhone against Sony and Nintendo games sales shows that Apple has taken nearly one fifth of the portable market in 2009, largely at the expense of Sony PSP. With Sony PSP Go, Sony's latest effort to revive its portable sales, having fallen short of expectations, Sony finds itself now challenged by two competitors in this segment.

Looking forward, with the iPad set for an April release, the traditional gaming giants may yet again be disrupted by Apple. 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, says Flurry.

Further considering data that Flurry released in its latest Smartphone Industry Pulse report, where the research group determined that more than one third of iPhone game developers come from the traditional gaming industry, Apple has already established broad third-party game publisher support. With the iPad featuring a larger screen and more processing power, games on the tablet take a step closer to computer and console gaming. Unless the other major video game platform providers (i.e., Sony, Nintendo and Microsoft) respond accordingly, Apple could continue to roll up video game market share, says Flurry.

Apple Inc.
Google Inc.
Microsoft Corporation
MacNews Search:
Community Search:
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Camel Up (Games)
Camel Up 1.0.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.0 (iTunes) Description: | Read more »
The Martian: Bring Him Home (Games)
The Martian: Bring Him Home 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Based on the best selling novel and critically acclaimed film, THE MARTIAN tells the story of Astronaut Mark Watney who finds himself stranded on Mars. Play as a NASA communications specialist and Mark’s sole... | Read more »
This Week at 148Apps: September 21-30, 2...
Leap Into Fall With 148Apps How do you know what apps are worth your time and money? Just look to the review team at 148Apps. We sort through the chaos and find the apps you're looking for. The ones we love become Editor’s Choice, standing out above the many good apps and games with something just a little bit more to offer. Take a look at what we... | Read more »
Tweetbot 4 for Twitter (Social Networki...
Tweetbot 4 for Twitter 4.0 Device: iOS Universal Category: Social Networking Price: $4.99, Version: 4.0 (iTunes) Description: *** 50% off for a limited time. *** | Read more »
Mori (Games)
Mori 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Stop, rewind and unwind with Mori.Time is always running, take a moment to take control. Mori is an action puzzle game about infinitely winding a clock, free from language or instruction. Become the hands that take control and move... | Read more »
100 Years' War (Games)
100 Years' War 1.0 Device: iOS Universal Category: Games Price: $3.99, Version: 1.0 (iTunes) Description: | Read more »
Tower in the Sky (Games)
Tower in the Sky 0.0.60 Device: iOS Universal Category: Games Price: $1.99, Version: 0.0.60 (iTunes) Description: | Read more »
hocus. (Games)
hocus. 1.0.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0.0 (iTunes) Description: New, polished, mind-bending, minimal puzzle game with dozens of levels and extra-ordinary designFeatures:- Beautifully crafted minimal puzzle game- 50 mind bending levels (new levels coming...)Get ready for the new puzzle... | Read more »
Mos Speedrun 2 (Games)
Mos Speedrun 2 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Mos is back, in her biggest and most exciting adventure ever!Wall-jump to victory through 30 mysterious, action packed levels!This time Mos has learned some awesome new abilities: Swing on ropes, swim through jelly, push... | Read more »
3D Touch could be a game-changer, but it...
Were you one of the lucky/financially secure enough ones to buy a new iPhone 6s or iPhone 6s Plus over the weekend? Yup, me too (I’m not convinced I was either of those two things, but let’s go with lucky for now), so I thought I’d delve into just what’s going to wow us about this upgrade. It turns out that so far, there’s a ton of untapped... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.