New Apple Tech

Since Apple’s (AAPL) iPhone and iPod Touch appeared, industry-watchers have speculated about the death of handheld gaming consoles. Recently published was an analyst’s prediction that by 2014, Apple’s devices would be the main source of growth in mobile games.

Currently Nintendo is dominating the mobile game industry. Nintendo has sold 3.31 million units of the DS device; this is the second highest monthly total ever for a video game platform. Handheld gaming devices were in the spotlight when it comes to the video game industry. Sales were up 7% from 2008, and the nintento DS had a 17% market share.
Making a direct comparison between apple and Nintendo is very difficult. The gaming industry usually doesn’t look at smart phone for gamming stats. However in the terms of revenue, smartphone games are still a fraction compared to other handheld devices like the Nintendo DS and Sony PSP.
In the end, it may make more sense to look at the succes of iPod Touch games as the expansion of a new, distinct market, rather than encroachment into Nintendo’s (and Sony’s) existing market.
Smartphones have certainly done some harm to handheld sales growth, and it seems likely that some day they will pose a serious threat. But for now, the evidence suggests that the games available on these platforms simply aren’t good enough to stop many consumers from buying the DS.

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