Apple Stealing Game Market Share From DS, PSP
Apple's iPhone and iPod touch are slowly stealing market share away from Nintendo and Sony in the gaming market.
Flurry Analytics, which focuses on the analysis of mobile applications, has released a report showing how Apple has affected the market share of U.S. video game and portable game revenue since the introduction of games to the App Store.
"From what we calculate, consumers are downloading iPhone games in droves," writers Peter Farago, VP of Marketing at Flurry. "Comparing iPhone against Sony and Nintendo games sales shows that Apple has taken nearly one fifth of the portable market in 2009, largely at the expense of Sony PSP."
Farago says in his blog post that Flurry's numbers are based on market data from NDP and Apple. "We also estimated Nintendo DS and Sony PlayStation Portable game software sales, which make up the significant majority of the portable category, in order to compare these to iPhone game sales," he explains. "We estimate iPhone game sales using a combination of data made available by Apple and using ratios and calculations from an aggregated set of data that we track through our analytics service."
The pie chart below shows Apple's market share in 2008 and then in 2009. The Cupertino-based company has jumped from 5 percent to 19 percent in 2009. That 19 percent is thanks to 5 percent it swiped from Nintendo's DS (down to 70 percent from 75 percent in 2008) and 9 percent from the PSP (down from 20 percent to 11 percent).
Read more about the study on the Flurry blog.
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wow... that's quite a chunk
but with the new nintendo handheld that was just announced... i can see nintendo getting some of that back
Question: Where does Flurry get its ad revenue data from in PSP and Nintendo DS?
Well they did just release the iPhone 3GS in 2009. Sony and Nintendo aren't losing customers; the iPhone crowd is just starting to get in on portable games.
I swear Apple's marketing tactics are ludicrous as are their pie charts.
Question - is Apple really stealing market share, or have they simply provided a product that has expanded the total market size? Or, rephrased - are Sony and Nintendo really selling less product, or has the market just expanded and caused their percentages to decrease?
Because iPod games cost about $10? Maybe similar to war on drugs by Bush, this war on piracy by Sony and Nintendo should be shifted toward making good games not costing $24.99-$34.99.
Gotta say, I wish that the PSP would attract more downloadable games. It seems a far better environment for gaming, at least to me...
Just so you're all aware, this study has no scientific validity.
There's no explanation of the methodology, validity/source of data or any actual data or numbers shown.
Basically, it's just a tiny bit more accurate than me making up a pretty graph on the spot with random numbers pulled out of a hat.
Question - is Apple really stealing market share, or have they simply provided a product that has expanded the total market size? Or, rephrased - are Sony and Nintendo really selling less product, or has the market just expanded and caused their percentages to decrease?
Market share and sales numbers are 2 different thing. The market share compares the sales of a product to those of other products. It's not compared to the numbers of units sold in a different period of time.
So, while Apple probably augmented the total number of games sold, we can't assume that. Would people have bought the same game on a different platform? We can't assume that either. What we do know is that Apple sold more games than last year, so they do have a higher market share, regardless of the sales of Sony and Nintendo.
Question: Where does Flurry get its ad revenue data from in PSP and Nintendo DS?
"Flurry's numbers are based on market data from NDP and Apple."
I believe this is due to both the massive market penetration of Apple in mobile/PMP markets (and the common household) along with the ways casual (and even shovelware) games seem to sell like hotcakes when made availible to that same common household. This is pretty much the same reason the Wii sold so well, and I could see how the intuitive interface along with casual games using that interface would have a common "non-gamer" wanting more and more.
A big difference here is that Apple wasn't selling its "console" with the games (Wii); so many people already have an iPod touch or iPhone for different reasons, whether those reasons include a versatile smartphone/mp3 player or just "cool" factor. I would more view it as Apple hitting a new demographic (people who wouldn't buy a device made just for "games"), similar to how the Wii greatly extended Nintendo's games demographic, as opposed to Apple actually taking away handheld gaming market sales.
The cheap prices on the games just make it even more availible to Apple users.
Nintendo is also getting GoldenSun DS!!!!!!!!!!!!
I am Nintendo's side on this.
If the iPhone's "simple" games are being considered for portable gaming market share, where does my laptop with the seemingly infinite number of Flash games and PC games fit into this?
What the F? How can you compare an actual gaming machine to a cellular device? Who writes this crap?
Stealing!!!
Apple should sue [itself]!!
I don't own a handheld gaming platform (well, an old PSP that I bought used for watching movies), but have about 20 games on my iPhone. Of course I haven't paid for any of them though.
This is because many Apps are free.
Good lord! They have a pie chart! On WOW general chat the other night some Mac user was wanting help with a software problem. I really wanted to help him out, unfortunately all I could do was refer him to some of Apple's Justin Long commercials...let's hope everything works out...
Graph looks misleading, and generally speaking, I don't think DS or PSP has the same audience as iPhone. DS and PSP are for kids or at best, young adults. The iPhone is for people with lots of money to burn, or for idiots who buy things they can't afford.
This shouldn't come as a shock to anyone.
1. iPhone games cost less to develop (cheap dev licenses).
2. iPhone games can be updated.
3. iPhone games are marketed to all iPhone users (tempting for those who do not usually play games on phones)
4. iPhone games contain the largest variety. From 15 hour RPGs games like Final Fantasy 1 & 2, random board games, stratagy games, 1 minute games, etc..
5. iPhone games are cheaper.
6. iPhone games have playable demos (Lite).
Welcome to the next gaming frontier. Online downloads is far more user friendly, quick, and updatable. You don't need to drive miles to pick up a game, you can just sit at home and download it. I don't see Gamestop being viable in the near future.
I forgot to mention iPod Touches. The DS and the PSP both have the same audience as the iPod Touch. If you look at the App Store, many 'Kid' and 'Toddler' games are doing quite well.
Useless analysis without dollar figures and without understanding if Apple is bringing a new type of gamer to the market. My guess is the overall portable gaming market between Nintendo and Sony was pretty static with Apple growing the market overall rather than taking away share.
Also most of those games on the iPhone are little casual games. I also remember reading that most users stop playing the games on the iPhone after a couple days. I have an iPhone and a couple games on it but I don't play them. If I want to play games I play them on my PSP or Gameboy Advance.
Also most of those games on the iPhone are little casual games. I also remember reading that most users stop playing the games on the iPhone after a couple days. I have an iPhone and a couple games on it but I don't play them. If I want to play games I play them on my PSP or Gameboy Advance.
But who wants to carry around a dedicated gaming device. It was bad enough when I needed an mp3 player. I only want to carry one electronic device on me at a time. I wish the iPhone was better at gaming, but I'd still rather play crappy free games for a few days apiece than carry around another device.
Not stealing, expanding.
Can't be much of a game on those small screens.
only a few games for the ipod have really captured my interest and they are basically console ports. Favorite one has got to be the port of Nazi Zombies. Aside from those few console ports i wouldn't say they are actually stealing revenue from Nintendo and Sony seeing as the games are totally different (ie games on the ipod are generally very simplistic timewasters)
Question - is Apple really stealing market share, or have they simply provided a product that has expanded the total market size? Or, rephrased - are Sony and Nintendo really selling less product, or has the market just expanded and caused their percentages to decrease?
I will say this i had a psp i paid 20-30-40 dollars for games then(much to my disgrace) I bought an iPhone sold my psp and games and bought the cheaper more fun games on the iPhone. The games out for psp and Nintendo just aren't that amazing and can often be played on the iphone anyway. Also people dont want to carry a phone and psp when they go out its way easier to pull out the phone or ipod to play something if you get stuck waiting.
P.S. I have since seen the light and moved to the far superior Android OS.