Can the iPhone beat the DS in the handheld gaming war?

A quick glance at Apple's list of the top App Store downloads of 2008 reveals a staggering trend: video games dominate.

According to Apple's internal figures, Texas Hold 'Em takes the second spot in the list of the most popular paid apps in the store and other titles like Crash Bandicoot: Nitro Kart 3D and Super Monkey Ball are also present in the top 10 list.

On top of that, Apple's iPhone and iPod Touch have proven extremely successful and given that success, it's not unreasonable to believe that both devices' sales will easily outstrip the current handheld gaming leader, the Nintendo DS.

Taking all that into account, it's incumbent upon us to consider the possibility of Apple (yes, Apple), controlling the handheld gaming market and stealing it away from the company that has dominated it since its inception: Nintendo.

And although it may be difficult for some Nintendo apologists to believe that the DS could fall victim to the iPhone, it is within the realm of possibility.

Well, that is, if you believe the iPhone and iPod Touch are "real" handheld gaming devices.

To say that the iPhone and iPod Touch compete with the Nintendo DS is like saying a MacBook Pro competes with a Netbook. Sure, they provide the same basic functionality, but one is designed for pure computing and the other is made for casual use. I don't think it's unfair to say the same for the DS and the iPhone and iPod Touch.

Look, I'll be the first to admit that the iPhone plays games relatively well and people are more than willing to pick them up. But let's not forget that it's a phone first, iPod second, and handheld gaming device third. On the other hand, the Nintendo DS is a handheld gaming device first, and everything else falls in line behind that functionality.

Let's put it another way: the Wii, Playstation 3, and Xbox 360 are direct competitors because each device's first priority is playing games. The same can be said for the DS and the PSP. But if an iPhone's first priority is phone calls and an iPod Touch's first priority is music, can we really say that they compete directly with the Nintendo DS? I don't think so.

And that's why we currently find ourselves in a strange place of logic: What constitutes a gaming platform? Is it the games? Is it the device's core function? Is it the device's manufacturer? It's tough to say.

Some, I'm sure, would say that any device that plays games and can be held in the hands should be considered a part of the handheld gaming market. To that I would ask when we draw the line. Archos devices play games and so does the BlackBerry. Old Palm devices had games and Windows Mobile products offer some, too. Should they all be considered a part of the handheld gaming market?

The only fair way to measure competitors in a market is to base it off a device's core function. The Nintendo DS and Sony PSP are designed with gamers in mind and all the extras they offer are a bonus. The same can't be said for the iPhone and iPod Touch.

Say what you will about the success of the games in the App Store, but as far as I'm concerned, the products they're compatible with have no impact on the handheld gaming market.

Sorry, Apple. If you want to beat Nintendo, you'll need to offer up a handheld gaming device. Until then, Nintendo is safe.

Check out Don's Digital Home podcast, Twitter feed, and FriendFeed.

[presswood]

I think Nintendo should be worried. "what constitutes a gaming platform?" Entertainment and your time. Both of which my iphone taken away from my DS. I haven't once touched my DS since I got the iphone. And yes, it a phone first, but with so much choice on games, music and videos, I don't need another portable gaming device.

[Orion3G]

I completely agree, presswood. While I understand the editor's view of it not being a gaming device first, when it comes down to it, it's all about the device being able to want you to buy games becaues you use it. Both my PSP and DS (which I sold recently) haven't been turned on once since I got my iPhone, becuase games are so cheap, now well made, and so accessible. Also, it's all on one device, that has the internet on it, easy to use, anywhere I go.

And let's face it, the PSP, PS3, and 360 (and even the DSi to an extent) are all trying to be "multimedia centers" more than gaming devices. The only console that is out right now that I would even call a gaming device whole heartedly is the Wii since it has no DVD playback and no multimedia functions other than gaming.

Also, one last thing to consider, the iPhone takes what is popular about all devices. 1. It takes the popularity of the idea of a 360 or a PS3 as an "all in one device" which is all the rave right now 2. It has Wii like functionality with it's accelerometers which is VERY popular right now and 3. It has taken what has made LIVE's Marketplace popular and expanded it, making it VERY easy for Joe Shmoes to make a game without needing a publisher.

Bottom line, it's profitable for designers, it's fun to play, with the iPod Touch there's no contract, and it's using the popularity of the iPod brand name to put itself in milions of peopel's hands like it's predicessors before it. It's unlike PSP, Gamegear or NGage that had to create a new brand from nothing but the reputation of the company name (ie: no predecessors). Everyone knows iPods are high quality, easy to use... so they trust it for these new applications to do the same but in a new field; gaming.

I'd say Nintendo and Sony should be scared. I'm a bit fan of both those companies, but right now, their handhelds are dead to me. This is what the PSP wish it could be. And considering the high rate of PSP software illegal downloads and the lack of new software because of a lack of retail sales, the popularity of a very controlled App Store that is secure is all that more appealing to game designers. Can it take over the DS? I think so. Has it taken over the PSP? Without a doubt.

Game machine or not, call it what you want... it's cutting sales from both devices.

[aztec92154]

I have a DS, and I really like it. The problem is, that its not always with me. I need to make a conscious decision to bring it with me. The iPhone on the other hand is always with me and saves the game state if I need to take a call. Its always charged, and I have tons of fun with the games that are available. Apple might be on to something that Nokia (N-Gage) saw a loooong time ago, but failed to carry through.

[pmnite]

I saw on another blog discussing this same topic where the parent said I think the iphone/ipod touch is great, look at all the games, look at the prices, and he was going to get his kids ipod touches for christmas. My question is... did he ever ask his kids what they wanted? I would bet they would say DS. Its got the games "they" want and its what their friends have. DS's can connect to each other. Those who think the ipod/iphone can surpass the DS are thinking like adults and not kids who are the target market of the DS, My 7 year old daughter wants a DS to play the new club penguin game. Can an ipod touch (which I do own for myself) do that? That's what christmas is all about Charlie Brown.

[dixonbm]

Seconded! Don, I think you are wrong to not include the iPhone/iPod Touch in the handheld gaming category. I have personally owned a PSP for years now. I primarily use it for watching movies on international flights and not gaming. (The memory card slot allows me to take along a number of movies whereas the iPhone limits me to 2 or 3. Plus the screen is larger.) From the PSP's first day on the market they billed it as an iPod competitor, it plays movies, plays MP3's, and of course games. Other than gaming the PSP has always lagged the Apple's iPod particularly in the areas of music and video. Sony was never able to capitalize on its special position in the market place as both a creator/owner of content and a hardware maker of devices to play the content. Now that the iPhone/iPod Touch has seriously entered the handheld gaming segment, the PSP strategy is in even greater danger. While they finally do have a store to download games, movies, etc, it still lags far behind the iTunes Store. Only time will tell if Sony can push its concepts to consumers.

The Nintendo DS, which I have not owned, is in even worse shape, in my opinion, since they don't even have an online store. Long-term Nintendo will need to make some serious changes to its DS strategy in line with its Wii store. As Orion3G mentioned before people want the all in 1 device. They want to game, email, websurf, talk to friends, etc all on the same device.

Apple has wide consumer penetration. They have reached a critical mass and are far more likely to sell more games to casual gamers that Sony or Nintendo will ever be able to sell to the smaller hardcore gaming consumers.

[originalj]

I'm sure the iPod Touch and iPhone are priced out of the DS' league. I have all three (DS, PSP and iPod Touch). I use my iPod for music, my DS for games because as far as its concerned its by far the best. Games are built from the ground up to take complete advantage of all the functions the DS has not to mention the wireless multiplayer features. Most of the iPod games are flash games you'd find on the internet hence them being free. If Apple want the iPod to compete with Nintendo and Sony, they'll need a first party game studio to make top tier games. That is something I cant see happening. Nintendo are changing the DS strategy, its getting its own online store like the Wii. Nintendo also have something Apple don't, a massive back category of games which easily dwarfs the size of the itunes store.
Also, which company voices its profits? How much did Apple sell over thanksgiving. I know they've sold millions of games on the store but like i said the apps are free. Concerning the games industry Nintendo are king of the hill.
I also think the PSP is having an ID crisis.

[seven7dust]

Lets not forget that the Iphone/Ipod touch is a good PDA too
it has Financial Apps,Educational apps,Travel apps and
various others categories of Apps {Even Books and Lifestyle apps}
Futher it also has the IPOD Functionality

Hence it has appeal to DIFFERENT people of Various age groups
and eventually a non-gamer might just download a game
to check it out and might get addicted
and over time could become a game buyer

Also a wide variety of games can be made to please
everyones taste because the Iphone is not limited by design

The Iphone is like the Wii of the Handheld Gaming as it can Convert n e one into a Gamer {plus it has a Broader Appeal}
and Could eventually create a whole new Genre of Games
One such Example is the MOVIE TRIVIA game
Even my Mom & Dad Love it {Games can appeal to n e group}

And when it comes to multiplayer games the Iphone has a massive advantage as you can connect from n e where in the world

Imagine Multiplayer Starcraft,Quake 3 on the Iphone !!!!! Drool

Till now the games available have only scrathed the surface
of the Iphone's potential...
The Future of the Iphone Gaming is as Bright as the Sun
The Possibilities r Endless

But Apple needs to stop being Arrogant and make changes to
the way Apps r arranged in the App store
Especially Games, They definitely need to
Add sub-categories like Genre,Target Age group,Gender etc

[daridenus]

Apple is getting quite creative with promoting Touch platform as a gaming device. Check this video for example - http://link.brightcove.com/services/link/bcpid1543292789/bctid4244560001
Note that the web site is moving with the ipod touch

[ctphil]

I agree with most of the bloggers and respectfully disagree with Don. The I-Phone and I-Touch ARE gaming devices. While they don't do the heavy lifting of games like Madden NFL, etc that require lots of buttons, they do other games VERY well. Given that most consumers already have a Wii, PS3, XBox, etc, do they really need their portable player to play the Madden NFL-type games?

I've got an eight-year old who wanted a DS for Christmas. Santa's bringing the I-Touch and he'll be thrilled.

Given the cost of downloaded games ($5-ish or less) versus game cartridges ($40-ish), they're a boon for consumers. Also, given the lower cost structure for game makers, (download versus, manufacture, import, distribute, collect, etc...) the game makers are all over the I-platform as the future of portable gaming.

If Nintendo and Sony want to keep Apple from stealing more market share, I suspect that their next-generation DS and PSP's will have the capability to download games at a fraction of the cost of game cartridges, and perhaps will play music, connect to the internet, have a camera, text and/or email...

What was Don saying about where to draw the line???