I’ve the same impression as macorange and BillH that SJ didn’t think games would be the killer apps of iPhones.  I recalled SJ mentioned, during SJ vs BG digital conference, that he is excited over the next generation device rather than concerned about Mac’s marketshare vs PC.  He added that those devices would make navigation easier.  So, is not games he is focussing on.  Nevertheless, iPhones are designed to play casual games well.  Carmack has mistaken lukewarm support for Doom equal to unwilling support for all games.  Meanwhile, video gaming market is shifting to casual gaming on iPhones, Facebook and Myspace away from game consoles.

*iPhone include iPod touch.

However (and whenever) the strategy developed, I sure like this take on the potential for future revenue.

The Journal cited research firm DFC Intelligence as stating that growth for dedicated portable gaming machines like the Nintendo DS and Sony PSP has reached an apex. That firm believes that Apple products will be the driver of portable game sales in the next five years, rising from $46 million in 2008 to more than $2.8 billion in 2014.

BillH - 11 November 2009 11:03 AM

However (and whenever) the strategy developed, I sure like this take on the potential for future revenue.

The Journal cited research firm DFC Intelligence as stating that growth for dedicated portable gaming machines like the Nintendo DS and Sony PSP has reached an apex. That firm believes that Apple products will be the driver of portable game sales in the next five years, rising from $46 million in 2008 to more than $2.8 billion in 2014.

I agree. Apple is enticing developers with hugh volume handset sales such as the iPhone, iPot touch and the forthcoming tablet. Further, developers do better with an elimination of manufacturing and duplication expenses and the 70% cut of gross sales and without any transaction fees charged for consumer purchases.

DawnTreader - 11 November 2009 10:57 PM

  Apple is enticing developers with hugh volume handset sales such as the iPhone, iPot touch and the forthcoming tablet. Further, developers do better with an elimination of manufacturing and duplication expenses and the 70% cut of gross sales and without any transaction fees charged for consumer purchases.

All very nice, but if Jobs truly embraced games, he would be spending some of that enormous stockpile of cash subsidizing third party development of truly unique games that would be exclusive to the IPhone platform.

macorange - 11 November 2009 11:17 PM

DawnTreader - 11 November 2009 10:57 PM

  Apple is enticing developers with hugh volume handset sales such as the iPhone, iPot touch and the forthcoming tablet. Further, developers do better with an elimination of manufacturing and duplication expenses and the 70% cut of gross sales and without any transaction fees charged for consumer purchases.

All very nice, but if Jobs truly embraced games, he would be spending some of that enormous stockpile of cash subsidizing third party development of truly unique games that would be exclusive to the IPhone platform.

You don’t think there’s sufficient economic incentive to develop for the iPhone or do you think there’s a lack of VC capital available? With a 70% cut of the gross on iTunes app store sales, the enabling of in-app purchases and the growing universe of app-capable devices in the market, what more do game developers need an terms of incentives to develop unique games for the platform?

Apple builds the platform and the toolset, developers do the rest.  “Games for Mac” or “Games for iPod Touch/iPhone”-type initiatives from Apple will never happen. 

Uniqueness is no longer the point of differentiation in theory—accelerometers, magnetometers, capacitive touchscreens are nothing new and soon all halfway competitive smartphones will have them.  Apple’s platform does, however, work well enough even with the somewhat limited overhead game developers have had until the 3GS.  It was the first, at least, to really push accelerometer and touchscreen gaming and the responsiveness of both were great from the get-go.  Now, it’s the ubiquity of the platform plus the “it just works” factor that propels gaming developer interest in the OS X touch platform.

Apple’s large installed base will motivate most developers to develop games for its platform, but as the number of Android devices and other smartphones grow, developers will also be increasingly motivated to release for multiple platforms at the same time, as some do now.

Even if Apple can induce certain developers to have exclusivity for a period of time, it would make a difference if it was a hit app.  For an example, look no further than Google’s new GPS app, which has come out first on the Droid and is one of the few real differentiating factors of that phone versus the iPhone. 

Watch for Google to continue to develop unique functional apps, and Apple will do the same (like the camera editing).

But its more rare that a utility or functional app will be a hit app.  There are a limited number of useful functions, and unless a patent can be secured, the funcitionality can be quickly copied.  But games offer infinite possibilities for uniqueness,  the uniqueness is governed by copyright, and regardless, it often takes a long time to develop a copycat version which is usually not accepted as a substitute anyway by the gamers who want the original title. 

If Jobs really embraced the fact that for a significant portion of the iPhone/iPod Touch market, games are the major motivation for purchase of the product, then he would do everything he could to develop unique games, either through joint ventures, subsidies or even, gasp, in-house development. 

But he doesn’t, so Apple won’t.

macorange - 12 November 2009 07:04 AM

Apple’s large installed base will motivate most developers to develop games for its platform, but as the number of Android devices and other smartphones grow, developers will also be increasingly motivated to release for multiple platforms at the same time, as some do now.

Even if Apple can induce certain developers to have exclusivity for a period of time, it would make a difference if it was a hit app.  For an example, look no further than Google’s new GPS app, which has come out first on the Droid and is one of the few real differentiating factors of that phone versus the iPhone. 

Watch for Google to continue to develop unique functional apps, and Apple will do the same (like the camera editing).

But its more rare that a utility or functional app will be a hit app.  There are a limited number of useful functions, and unless a patent can be secured, the funcitionality can be quickly copied.  But games offer infinite possibilities for uniqueness,  the uniqueness is governed by copyright, and regardless, it often takes a long time to develop a copycat version which is usually not accepted as a substitute anyway by the gamers who want the original title. 

If Jobs really embraced the fact that for a significant portion of the iPhone/iPod Touch market, games are the major motivation for purchase of the product, then he would do everything he could to develop unique games, either through joint ventures, subsidies or even, gasp, in-house development. 

But he doesn’t, so Apple won’t.

I think Apple is attracting plenty of game development.  Many of the biggest game developers are porting their IP to the platform

http://www.konami.com/touch/game.html
http://www.gameloft.com/iphone-games
http://www.eamobile.com/Web/ipod-games

And some are creating new IP for the Iphone

But Pishevar emphasized that SGN isn’t going to be content to simply rest on its laurels and exploit its large audience by rehashing games that have already been successful (he notes that the the highly derivative nature of many games on Facebook was one of the reasons SGN decided to shift over to the iPhone). Instead, he says he wants to push the limits of the iPhone, and eventually other mobile platforms. And to prove that wasn’t just marketing talk, he gave me a sneak peek at some of the projects that SGN has in the works. I’m sworn to secrecy on those for now, but suffice to say, SGN has some seriously cool things in the pipeline right now that really will take mobile gaming to the next level.

SGN

And then again, I could be wrong about Apple not fostering its own games:

http://www.appleinsider.com/articles/09/11/13/apple_looks_to_hire_aaa_game_developer_for_in_house_iphone_team.html

In the meantime, Electronic Arts is going through troubled times.

EA layoffs

If anyone currently at EA fearing for their future at a company that can’t think past selling boxed versions of digital information thought they could fill such a job role at Apple the synchronicity couldn’t be more delicious.

Interesting statistic on Iphone games vs Andriod from a large game development house.  The App store again proves it worth.

Electronista

Gameloft today revealed that it has scaled back development of games for Android phones. The French software house made the move as just a fraction of its sales come from the Google platform: it sells 400 times more iPhone games than Android titles, the company’s financial head Alexandre de Rochefort said.
He blames the reduction primarily on the poor design and promotion of Android Market. Without a design that exposes apps or which encourages downloading paid apps, customers aren’t as likely to embrace commercial software as they are on the App Store.