How the iPhone has Changed the Game Industry

With the iPhone launching about a year and a half ago, there has been incredible growth since then. As of November 4, 2009 there are a total of over 100,000 apps on the app store and there has been more than 2 billion total application downloads since it launched.

Now, anyone who has the dream of being a game developer, has access to a huge audience and the potential to hit a gold mine. The low barrier to entry with the iPhone makes it very attractive for indie developers, and for good reason.

But with the 100,000 applications on the app store, how much quality control is there? How many applications really are worth purchasing? Some websites even claim the reason they pirate applications is because there are too many bad apps avaiable for purchase and there aren’t enough demos.

With Sony’s recent launch of the new PSP Minis, direct response to Apple’s App Store, more evidence has surfaced on how the iPhone has changed the game industry. In response to comments from consumers, Sony’s Eric Lempel explained that it is up to publishers to set pricing. IndustryGamer’s David Radd expressed how his belief that $4.99 should be the ceiling for pricing [source article], and this shows the direction that the App Store has begun to push the idea of consumers. Yes, consumers want good games for cheap, but the reality is that creating games is not cheap [take a look at Wikipedia].

With the release of iPhone and iPod Touch, the big companies are starting to feel the sweat. Sony has recently released the PSP Go which is Sony’s first all digital console – their response to Apple’s iPhone. The big mobile handheld manufacturers (Nintendo and Sony) are feeling the pressure, and it seems that the journalistic element of the video game industry are constantly remembering that fact.

So how will the future of the video game industry be shapped by Apple’s continued advances?

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