Through the iPhone and iPod Touch, Apple is moving headlong into the world of portable gaming, and could soon give the likes of Nintendo's DS and Sony PSP a run for their money,
BusinessWeek's
Arik Hesseldahl says. The slate of games available through the App Store offers "immersive, addictive fun," Hesseldahl says, but most importantly, it's far more easily accessible than both the DS and
PSP. "When you consider the ease and reach of Apple's (AAPL) online method for distributing games," Hesseldahl says, "Apple could do in this category what it did in online music."
In fact,
the App Store is already home to more games than either the DS or PSP, offering some 1,500 downloadable titles compared to fewer than 300 for the PSP and 600 for the DS. App Store games are also much
cheaper than their console counterparts, at prices ranging up to $10, compared to around $40 for new DS and PSP titles. Apple is also already closing in on Sony and Nintendo's reach, on pace to sell
40 million devices or more per year that are capable of playing games. By comparison, Nintendo sold 42 million DS consoles in the 18 months to June 2008, according to iSuppli.
Of course,
with the App Store, there are no costs associated with physical distribution. Moreover, developers get a hefty 70% cut of sales, while Apple keeps 30%. There are no other middlemen involved in the
game sales. Despite these advantages, Van Baker, a gaming industry analyst from Gartner Group, says, "They're not going to put Sony or Nintendo out of business," as both companies have thriving
home-console businesses, too. The iPhone and Touch also aren't ideal for gaming; they're principally made for calling, Web access and music
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