Does the iPhone have enough game to take on Nintendo and Sony?

UPDATE: Apple says it has 400 games for iPhone that run on its Safari Web browser.

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In this corner, we have the iPhone, a sleek touch screen cellphone and Web browser, made by Apple. Mascot: CEO Steve Jobs. Units sold: 6 million, according to Jobs.

In the other corner, we have the Nintendo Dual Screen (DS), with two touch screens, but no phone. Mascot: a mustachioed plumber named Mario. Units sold: 64.6 million units, according to IDC.

And in the wings, we have Sony's PlayStation Portable (PSP), a miniature version of the iconic PlayStation game console, with Internet phone calling via Skype. Mascot: Daxter, a pint-sized furball with attitude. Units sold: 32.1 million, according to IDC.

There has been some speculation that the iPhone, which is receiving a big upgrade in both hardware and software, could be a DS (and PSP) killer, but analysts who cover the game industry think not.

"The DS and the iPhone aren't even in the same league," said David Cole, analyst with DFC Intelligence. "DS sold 30 million units last year alone to people who all use it as a gaming console. Apple has sold a fraction of that, and a smaller fraction of those will actually buy a game. So the volume is much smaller for the iPhone as a gaming device."

Games and iPhone ought to...

... be as sweet together as peanut butter and chocolate, but so far the two great tastes haven't gone great together. The games currently available for the iPhone are through the device's Safari Web browser, which limits what the games can do. In March Apple released software development tools for programmers to build applications for the phone that can be downloaded directly on the device and take advantage of its many talents, including the motion sensing accelerometer and multi-touch screen.

Among those who have taken up the challenge is Brian Greenstone, president and founder of Pangea Software in Austin, Texas. He shared the stage with Jobs today to show off two games that are on the runway when Apple launches its App Store for third-party iPhone software in early July.

Greenstone chose to develop for the iPhone over the DS or PSP because he wouldn't need a big marketing budget to compete with the hundreds of games released each year for the other two hand-held platforms. "It allows a small developer like me to compete on an even plane with the big guys," he said.

It's telling that Greenstone says he isn't motivated by the iPhone business opportunity. "It was just about getting a game onto a portable device," he said. "It had nothing to do with the money."

-- Alex Pham

Image: Cro-Mag Rally game for iPhone. Credit: Courtesy of Pangea Software

Comments

[JOURnalism chick]

Phone, virtual voicemail, internet, iPod, games, etc. what more can you ask out of apple? In my opinion nothing, the iPhone has been in the market for just one year and its amazing how every little adjustment makes this phone better, and better! Does the iPhone have enough game to take on Nintendo and Sony? Yes indeed, right now the iPhone is advancing little by little with big steps, making competition between the iPhone, Sony, and Nintendo more steamier. Like I said the iPhone has only been out for one year, just imagine in five years, it will be a big hit.

[mocax]

I just want a one-handed interface for iPhone.

[Rod]

Right. But you didn't mention Sega. I'm sure they're just developing a game for fun, too. So there goes your thesis completely... pay attention next time.

[opherko]

The iPhone may not be as good as a PSP for gaming, and is controlled in a unique way compared to both the DS and PSP; but as an adult with children carrying such devices I'll say that with a 3G iPhone in my pocket I'll actually get a chance to play a game or two now and again. Not to mention use turn by turn A-GPS navigation in my car while streaming iTunes to my stereo and on standby to receive a call if that should actually happen in our text crazy blog happy society. (granted I don't know if you can do GPS and iTunes at the same time, but that would be ideal) Oh; and lets not forget e-mail, productivity apps and other features not yet explored. My point is that it is a gaming console that appears to be pretty decent, but it is a fabulous multipurpose tool. I look forward to Skype getting off their rears and developing a native application for the iPhone for WiFi talk and anytime chat as well as all the other products on the horizon that are coming to he device. I didn't even have to mention the internet browsing capabilities (most used feature) to make my point.

My next question is when will the GPS enabled iPod Touch be available for all those committed to their current phone (or contract) and want to have that turn by turn GPS enabled iPod in their car running Skype as a phone from the worlds available WiFi hotspots. Don't forget to count the iPod Touch sales in your gaming comparison because it has all the same features of the iPhone less the phone. This means it will be able to play all the same games sold through the App Store that the iPhone can play. Apple sells a little over 80 million iPods a year (I don't know how many are the Touch) which means the comparison on number sold as a gaming device is a little more in Apple's favor than portrayed in this article.

I personally have waited a year without a contract on another carrier for the 3G iPhone to become available. Next month I'll be picking up 2 and between telephone calls I might actually play a game or two.