iPhone Games More Profitable Than PSP

The iPhone is beating PSP at it’s own game (no pun intended)!

Although the iPhone is technically a phone, how in the world is it able to compete in the handheld gaming market space?  Let me rephrase that – the iPhone is not just competing in the hand-held gaming space, it’s actually outperforming the PSP.

According to an NPD data analysis, the iPhone is now responsible for 19% of all revenue generated by handheld games (as of 2009), compared to the PSP’s 11%. Obviously, the DS still reigns supreme with 70%.

The report also claims that Apple had a mere 1% stake in overall game industry revenue during 2008, and that it grew to 5% in 2009.

In my opinion, Sony cannot expect to sell games for $20 plus dollars and compete with the iPhone that is selling games for only $.99, and in a lot of cases, 100% free.

And even though the DS has a 70% market share, I think they will start losing ground to the iPhone as well.  As a first hand experience, I see kids preferring to play games on the iPhone instead of their DS and DSi.

Call it what you will, but there is no question that the iPhone is becoming a major player in the hand-held gaming market!

Ironic isn’t it?