iPhone takes on gaming consoles

Apple's iPhone has emerged as a serious videogame platform, fulfilling the long-held promise of mobile phone gaming and positioning itself as a legitimate competitor to handheld consoles.

The Game Developers Conference in San Francisco last week was abuzz with plans about games for the iPhone and its WiFi-only cousin, the iPod touch.

With around 30 million devices on the market - 17 million iPhones and 13 million iPod Touches - and access to thousands of games at their slightest whim, consumers are buying and playing games by the tens of millions.

Meanwhile, game designers are diving headlong into the market, churning out offerings at a furious pace.

Some say the iPhone's unique features - GPS capability, connectivity, a touch screen - and sheer variety of content gives it an edge over its more established handheld console competition, Nintendo's DS and Sony's PSP.

The DS franchise has shipped more than 100 million units and the PSP more than 50 million since both came to market in late 2004.

"The iPhone is a threat to other portable game platforms," said Mitch Lasky, a partner with venture capital firm Benchmark Capital, and the former chief executive of Jamdat Mobile, which was sold to Electronic Arts in 2005 for $680 million (467 million). "It could be just massive."

Apple's App Store went live only last July, but an entire network of developers has sprung up to create thousands of games, ranging from puzzles and arcade games to action and shooter games. Developers take 70 per cent of the revenue, while Apple keeps 30 per cent.

Game publishers include big names such as Electronic Arts, Gameloft and Glu Mobile, up-and-coming outfits like ngmoco and small developers working out of a cubicle.

Sanette Chao, director of public relations for Gameloft, said the company has made more money selling iPhone and iPod touch games in the past eight months than it has made overall from some other carriers.

"The mobile industry has been waiting for some sort of tipping point...when the App Store was launched, that was the tipping point," Chao said.

According to the latest data from analytics company Mobclix, more than 7,300 of the iPhone's 31,000 applications are games, or roughly 23 per cent. Around 5,500 of those games charge a fee.

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