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Fast Talk

August 13, 2008

Q: Will the iPhone crush the Sony PSP and Nintendo DS in the handheld gaming market? | posted by Fast Company staff

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August 13, 2008 at 9:48am by Douglas Paul

No and no. The first no is for the use of the work "crush." That's way too strong a word and so that's an obvious no. The second no is for the general gist of the question ( will the iphone beat the psp and ds in the handheld gaming market ). For all the woopla over the iPhone ( which I own and love ), it reminds of the saying "jack of all trades, master of none." Clearly as a mobile platform ( which is what the iPhone is first and foremost ), the iPhone is lightyears ahead of the game in many respects but gamers are a very unique bunch who require dedicated attention and resources. Sony and Nintendo have dedicated time, mindspace and resources to making sure that the needs and wants of gamers are met ( most of the time ) and I think that kind of focus will win out in the end. What Apple needs to do is just make it interesting and close. Make Sony and Nintendo sweat a little bit because that usually leads to greater innovation but I don't think the iPhone can win this race.

August 13, 2008 at 10:25am by Kevin Ohannessian

Crush is a harsh word. I think the iPhone will thrive as a third competitor in the field. The novelty of the touch screen and the accelerameter will attract developers. And the platform's environment, from the sizable install base to the iPhone's stature as the 'thing to get' will only help. Even the delivery of games via download in the app store makes it attractive to developers. And if developers are happy they will make great games -- and those will attract more gamers to sustain the iPhone as a viable gaming platform.

August 13, 2008 at 11:50am by Hugo Ortiz

they don't even compete in the same market

August 13, 2008 at 12:16pm by Brian Sterricker

No. As much as some want to believe that devices with all-encompassing capabilities will replace single-function gadgets, it just won't happen. People want the experts to do what the experts are good at.

August 13, 2008 at 12:54pm by Bradley Szollose

No. Branding is about perception...and you can't change perception. Sony PSP and Nintendo DS are gaming gear...the iPhone is a Mac Phone. If you want to get a lesson on how to enter a market and NOT dominate, look at Microsoft's XBOX 360.

Sometimes corporations enter an already dominated arena just so they can have a "me too" set of products in that area.

iPhone can enter the portable Game Gear market, but they will be far from becoming the leader.

FYI: These companies (Apple and Microsoft) are not entering the game arena to knock out Nintendo or Sony, they are entering the gaming market so when you decide which ONE gaming unit will run everything in your house - computer programs, TV, Internet, phone and the thermostat - you'll choose their unit. In that race to market, Apple will beat out Microsoft...hands down.

August 13, 2008 at 3:27pm by Gal Borenstein

As a proud parents of three boys (ages 5-10) and a technology branding strategist, here is my take: The core market got gaming has always been children. As long as there are parents around, I believe that while a segment of the market that gives little kids cell phones would likley to buy them an iphone, responsible parents will prefer the ability to monitor their kids activities with a dedicated device such as the Sony PSP or Nintendo DS. I think the psychology of accountability will play a role in what kids will be using/buying visa vie their influencers/purchasers.

August 13, 2008 at 4:01pm by Lynne d Johnson

@Douglas and @Kevin -- the key thing that Apple has here and the gaming devices don't -- 3rd party developers. There's so much innovation when you open source and let the community build the apps. That means more games. Perhaps games more geared to adults, but on that I'm not even entirely 100% sure. Consider this: As of July 31 Tap Tap Revenge (AKA Tap Tap Revolution) had up to 1 million downloads. The App store has sold more than 60 million Apps.

"Video games have been one of the most popular application categories, as the iPhone offers game developers an attractive mobile platform because of its robust processor, motion controls, a touch screen, and strong graphics capabilities. Sega said it has sold more than 300,000 copies of its Super Monkey Ball game at $9.99 a piece." (Source: Information Week)

Remember we're talking about both the iPhone and iPod Touch here. And sure the novelty of the App store may wear off, but if new releases keep coming out, worthy releases, people will download and purchase them. As long as developers keep creating.

So let me answer the question: Will it crush? Not for a while, but it's going to be a strong third player as Kevin already pointed out. I wouldn't shrug it off as just a phone.

August 14, 2008 at 8:04am by Steven Taylor

Crush the PSP and the DS? What a silly suggestion. Just look at the numbers: PSP has sold more than 37 million units worldwide, the DS already over 78 million -- to a very dedicated audience. The iPhone just sold over 6 million? To people who may be interested in a whole lot of things of which gaming is merely one, somewhere down a long list of possible applications? Perhaps once it sells in the tens of millions it will become a mobile gaming platform to be reckoned with but until then it'll be a niche.

August 14, 2008 at 7:09pm by Christopher O'Mara

Don't get me wrong, the iPhone is an awesome device. However, Nintendo has put all of it's focus on making the DS a great GAMING device. AndSony did really well creating a great game/media device. I wouldn't be surprised to see Apple take a shot at a portable gaming system in the future, but the iPhone will not crush the PSP or the DS in terms of gaming.

August 15, 2008 at 12:39pm by elder norm

I love this comment from above. "they don't even compete in the same market". I am sure that this person has no idea that the iPhone is becoming a really great portable game machine. Apps store. Nuff said (well 30 million downloads) :-)

August 15, 2008 at 12:42pm by elder norm

Another comment I like............." Perhaps once it sells in the tens of millions it will become a mobile gaming platform to be reckoned with but until then it'll be a niche.".................... Custer was in charge until the "niche" Sitting Bull and his Braves made Custer only a memory. ...................Just a thought.

August 16, 2008 at 2:12am by Ian Leong

ho ho ho, PSP and DS are hand-held gaming consoles, the iPhone is a fashion accessory. They are not even in the same market.