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Five More iPhone Myths

200810010330
Daniel Eran Dilger
After a hard rumor rain, it’s time to break out the myth mower and buzz down the noise to a lower threshold. Here’s five myths of the iPhone that need a fierce clipping.

iPhone Myths
Five More iPhone Myths
Myth 6: iPhone Developers will Flock to Android
Myth 7: iPhone Buyers will Flock to Android
Myth 8: iPhone will lose out to Steve Ballmer’s Windows Mobile 7 in 2010
Myth 9: iPhone Unable to Penetrate Europe Due to Symbian Dominance.
1. Verizon EVDO iPhone Just Around the Corner

Sorry, this isn’t going to happen. For starters, we know AT&T has an exclusive contract in the US through 2011. Even if it didn’t, or if Apple found some way to terminate the contract, offering an EVDO phone still wouldn’t make much sense.

Why not? Right now, EVDO enjoys the title of the strongest 3G network in the US. The technology is the third generation mobile network associated with the Qualcomm CDMA2000 family. If Apple were aiming at where the puck was in 2007, an EVDO phone is where Apple would have aimed its stick on the ice.

However, Apple took the calculated risk of supporting UMTS, the third generation mobile network associated with the GSM family. Unlike GSM’s second generation network, UMTS uses a similar transmission technology to Qualcomm’s: W-CDMA. However, Qualcomm decided to bet its own proprietary version against the emerging UMTS standard in Japan and Europe, setting up the US with a divided landscape where 3G phones on the top four mobile networks can’t interoperate.

For Apple to support CDMA2000/EVDO, it would need to double its engineering efforts (or halve its resources devoted to delivering UMTS support), only to gain access to markets in North America where it can already sell the iPhone. EVDO support is worthless in every other market worldwide. By the time Apple could deliver this, AT&T’s UMTS service will have improved significantly, creating an expensive solution to a temporary problem that no longer exists.

UMTS service outside the US uses different radio frequencies, but the technology is the same. By investing in improvements to UMTS rather than spreading its resources around, Apple has efficiently targeted the largest possible market for the iPhone 3G.

The fact that there is no Verizon or Sprint version of the iPhone 3G makes the model more attractive to AT&T, resulting in both greater incentives for the company to co-market the phone with Apple, as well as leverage that allowed Apple the ability to manage sales and support for the iPhone itself, as well as mobile media and software sales through iTunes.

How AT&T Picked Up the iPhone: A Brief History of Mobiles
Inside iPhone 2.0 review series: the new iPhone 3G hardware

2. The App Store is Doomed Over 6 Canceled Apps

Apple has turned down a half dozen programs from the App Store, and a gaggle of pundits have decided this means dire consequences for Apple as developers flock to Android Market. In six months, they likely will have moved on to other subjects of panic. That’s because Apple has things other mobile platforms lack: $40 million a month in capitalist incentives for developing software and nearly ten million iPhone users (along with lots of iPod touch users).

Android Market has a zero installed base, and its initial customers will overwhelmingly be people who don’t buy software: Linux users, DIY hobbyists, and Windows Mobile defectors. Android as a platform has more than ten million units to catch up on, but the biggest problem is that those attracted to the platform won’t be throwing down money to buy apps because they’ll have no problem stealing them or simply contributing work as volunteers.

Cross the stillborn market for Windows Mobile software with the lack of any profit incentive for developing commercial software in the Linux desktop world, and you don’t end up with a competitor to the iPhone App Store, but rather something that sounds as viable as the Amiga did in 1986 or the BeOS in 1996 or OpenMoko in 2006. How is it possible not to see this one coming? Successful platforms are build on profit incentives for third party developers, not interesting technology demos or promises of developer freedom.

The iPhone Store Impending Disaster Myth
Google’s Android Platform Faces Five Tough Obstacles
Google’s Android Market Guarantees Problems for Users

3 The App Store Proves That Anyone Can Sell Mobile Software

Android Market and the planned Windows Mobile Skymarket hope to take advantage of the efforts Apple pioneered in its implementation of the App Store. Certainly if Apple can roll it out, it must be a trivial undertaking that less experienced rivals will have no problem duplicating!

Alas, such reasoning didn’t work for those trying to clone iTunes or offer an alternative. Recall the music market: AOL MusicNow, MTV URGE, Musicmatch Jukebox, Wal-Mart Music, Yahoo Music, and Microsoft’s own MSN Music all failed under PlaysForSure, and even Amazon’s MP3 sales trail iTunes in a very distant second place for online music purchases despite offering a wider selection at lower prices and lacking DRM.

In movies, Apple obliterated CinemaNow, Vongo, and Movielink, has skewered Vudu, and far outpaced Microsoft’s own attempts to sell movies and TV. Amazon has similarly slipped into near irrelevance even with its TiVo partnership.

We’re now supposed to believe that phone vendors and mobile service providers are going to outclass Apple’s iTunes in mobile software sales? Android Market offers less revenues and fewer customers. Microsoft and Symbian are both rapidly slipping in market share, and haven’t been able to successfully market software until now. They also both lack hardware profit incentives that would allow them to merchandize software at low prices.

T-Mobile plans to sell online software for all of its phones, which sounds great until you realize that the company represents several failed software platforms, from Windows Mobile to Sidekick to the lowest common denominator of Java ME. Who is going to get excited about new efforts to sell old junkware? Apple made mobile software sales look easy, but it wasn’t, and it won’t be for would be rivals.

Microsoft’s Zune, Vista, and Windows Mobile 7 Strategy vs the iPhone
Microsoft plans “Skymarket” apps store for Windows Mobile 7 in 2009

4. iPhone Games Can’t Compete

In Forbes, Brian Caulfield recently lamented, “When we suggested in June that Apple might be preparing to attack the handheld gaming market, bloggers freaked out.” Imagine how I felt when I detailed three months earlier in March that the iPhone compared well against the Sony PSP and the Nintendo DS, and that Apple was clearly targeting the handheld game market.

Even by that time however, the idea of iPhone games was not controversial but glaringly obvious: Apple had already demonstrated big name titles in development. Half of the six titles shown off at the iPhone SDK announcement were games!

I’d been writing about Apple’s mobile gaming efforts since mid 2006, when I presented why it was unlikely Apple would jump into the PC gaming market, but that casual gaming would offer the company a new avenue of business on the iPod. Since then, I consistently outlined the idea of how Apple would deliver mobile software through iTunes, creating a market for downloads that hadn’t significantly existed before. Now that it’s a reality, the criticism has died down considerably.
 Wp-Content Uploads 2008 03 200803191903-1

iPhone 2.0 SDK: Video Games to Rival Nintendo DS, Sony PSP
Apple’s New Dual Processor Game Console
The Apple Video Game Development Myth

Mario V. Apple: On Like ‘Donkey Kong’ – Forbes.com

5 Steve Jobs Doesn’t Like Video Games

Pundits always like to trot out the idea the Steve Jobs has no particular interest in video games, so Apple won’t ever deliver video games. This is wrong for a couple of reasons. For starters, Jobs has also voiced a complete lack of interest in TV, contrasting passive TV watching with active computer use. Despite that, Apple now sells the vast majority of all TV downloads.

The main reason Apple hasn’t rushed to battle Microsoft in the desktop PC gaming market is that Apple has finite resources, the gaming market has finite sales, and serious PC gaming titles have a short lifespan. Microsoft has also worked to monopolize the PC gaming market by tying development to its proprietary DirectX. While OpenGL is chiseling away at Microsoft’s position, there is very little Apple can do to induce massive new games development efforts on the Mac.

The Mac platform offers game developers few incentives; Mac strong points, including an easier to use, better looking, and more consistent user interface, have no relevance to games that take over the screen and present their own interface. That’s why Apple has aimed at getting EA to port its existing Windows games to the Mac using TransGaming’s Cider, which maps Windows calls to the native system. Apple also supports installing Windows using BootCamp for native performance.

Getting games on the Mac is a difficult challenge given the vast resources Microsoft has to sponsor PC gaming. However, in the mobile area there are no existing successes. Nokia tried to taking on gaming with the sidetalkin’ N-Gage, only to fail miserably. Apple redefined mobile phone gaming right from the start in the new SDK, bringing handheld console gaming to the iPhone and iPod touch.

The iPod touch pushes handheld gaming as a central marketing focus. Apple is quite obviously interested in gaming in markets where it has some chance to compete.

Inside iPhone 2.0: the new iPhone App Store
Inside iPhone 2.0: iPhone OS vs. other mobile platforms
Will Nokia Rescue Microsoft’s Zune? Haha No.

Myth 6: iPhone Developers will Flock to Android

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46 comments

1 Cataclysm { 10.01.08 at 7:47 am }

Daniel, you’re fine when you stay in the tech world, but when you venture into gaming, it reminds me of a swimmer who is happily paddling in the shallow end but goes too far and begins drowning. Here’s why.

i-phone and ipod touch gaming is competing (and devouring) the other cell phone gaming. To a lesser extent, the PSP may also be affected as the PSP attempted to be a multimedia gaming handheld. But the PSP has been virtually on life support anyway in America.

The reason why Apple in gaming got some attention at first but then got ignored was due to sensational media reports (which is common about Apple) looking for conflicts where none exist. The reason why it is ignored is because Apple is not competing against PSP or DS (PSP is arguable I’ll admit). Apple is competing against other cell phone gaming.

Cell phone gaming is nothing new. It has been around long before the iphone. In the games industry, there was question about whether cell phone gaming would destroy traditional handhelds. And the answer became a sound ‘no’. The handheld gaming market was not affected by cell phone gaming. The reason being is that gaming is a supplement to the cell phones. No one buys a cell phone entirely for gaming. But people do buy a DS or PSP entirely for gaming. Developers will always stay with the dedicated gaming handhelds because every game handheld bought means a gamer who intends to buy games. Many people who buy an iphone or ipod touch will never buy games. The installed bases are apples and oranges and defy traditional comparison.

Consumers do not purchasing an iphone or ipod touch for gaming. Like cell phone games, they are a supplement to the rest of the product. It is even worse with the iphone as why in the world would anyone consider that a threat to handheld dedicated game systems when it has service plans?

I noticed some Apple bloggers (such as yourself) blow a horn about developers making games for the iphone/ipod touch. But what I did not see was that these same developers made games for cell phones. In other words, just because it is a handheld and plays games does not mean it is in competition with the DS. This has been your major mistake as well as other media to assume this. But I never see cell phone gaming mentioned. I guess that would take all the honk away from the triumphant trumpet blowing.

And it gets worse. The game industry is software based, not hardware based. While Microsoft and Sony have some ulterior non-gaming purposes for their machines, Nintendo (and Sega before it left the market) craft their hardware in such a way to create new experiences to service the software. The First Party molds the hardware for their vision of gaming. Microsoft and Sony, weak on the first party front, have bought up many studios and have attempted to forge a strong first party line up. First parties not only help mold the hardware toward the vision of gaming the company is going for, it also ensures exclusive games.

Apple has no first party game studios. It has zero ability to mold hardware around gaming software.

Apple is an integrated software and hardware maker. So is Nintendo. But the difference is that Nintendo is games orientated with their hardware and software. Apple is not. Apple is not making integrated products for gaming.

You, yourself Daniel, make this point: that Microsoft and Apple are not exactly competing in computers since Microsoft doesn’t make the hardware while Apple makes integrated hardware and software. Yet, you fall into the Microsoft myth when it comes to another industry such as the gaming industry. Apple and Nintendo are not competing as Nintendo is an integrated gaming hardware and software company. Apple only makes hardware that games are played on. Apple does not make gaming software.

In other words, Apple is the Microsoft and Nintendo is the Apple in the gaming market. Microsoft even has a more integrated gaming product than Apple does with their Xbox franchise. At least Microsoft has gaming software studios.

While the media clearly gets Apple wrong, they are clueless even more in the game industry. When it comes to reporting on Nintendo, they can’t get anything right. For example, in a few days Nintendo will likely release a new iteration of the DS. Mark my words: media will get it wrong and begin to say that the new DS is a *response* to the PSP or to the Apple iphone or some BS response like that. Nevermind the fact that Nintendo releases a new handheld every two years, Nintendo is carefully following the Blue Ocean Strategy. The new DS is an element of that strategy. It will be laughable when the media declare the new DS to be a ‘response’ because the Blue Ocean Strategy itself is defined on non-competition and ignoring one’s competitors.

Another indicator to show you are drowning when talking about gaming is how you described PC Gaming. Most PC Gaming is not done through the traditional store boxes anymore but entirely online. And none of it is tied to Microsoft’s proprietary DirectX. The web browser and web portals are where most PC gaming is at. What is Apple’s response? Oh yeah, there is none.

You made a gross reporting error by saying ‘pundits’ say CEO Steve Jobs doesn’t get gaming. There are no ‘pundits’. It was one person. And that person was id’s John Carmack, the famous game engine designer. Here is a link for you:

http://www.eurogamer.net/article.php?article_id=204516

If you read the story, it gives context as to Carmack’s complaint. He says that Jobs is not making gaming a priority in the design of the Apple products as music and movies are. Daniel, Carmack is saying that because Microsoft, Sony, and Nintendo design their game products… around gaming! Obviously, gaming is a supplementary addition to the Apple handhelds. It is simply better cell-phone gaming. Further on in the article, Carmack makes the same comment I do as to why Apple’s handheld will not touch the DS.

Steve Jobs worked for Nolan Bushnell, the founder of Atari, and even offered Bushnell an investment in Apple when it started up. Woz designed the Apple II to be a gaming computer after he worked on Break-Out (which is what made the Apple II so popular with its colors and all). The founding of Apple is a spin-off from the game industry after a fashion. Steve Jobs has been and knows about the game business. It just isn’t his priority or his focus with Apple products. That is Carmack’s point. And based that Apple’s hardware is never designed around gaming but more around aesthetics, music, and movies, Carmack is entirely correct.

2 dallasmay { 10.01.08 at 8:07 am }

I have bought more video games in the last few months for my iPhone than I have for a PC or console in the last decade. I bought one game. I bought CroMag Racing for $1.99. I figure that company must have turned $100,000,000 if even I bought their game. And it is fun to play too.

3 John Muir { 10.01.08 at 8:20 am }

@ Cataclysm

Zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz…

Now where have I heard all of that before? Oh yeah: everywhere. And about music too. ‘Apple aren’t “right” for this. Pre-existing players are doing okay. Steve Jobs is a nasty, disinterested man.’ etc. :D

Nintendo are interesting because they are indeed the “Apple” of gaming. Whereby “Apple” = Apple Computer circa 2003 with its own Mac hardware platform dominated by its own first party software. Nintendo make damn good games. But they’ve always had trouble supporting third parties on their platform. Sony blew the NES and SNES legacy out the water with the first PlayStation. Nintendo are only now positioned to do anything about winning those studios back, thanks to serious missteps from both Sony and MS. But it’s the Wii’s first party titles which make the system. The libraries on the 360 and PS3 shame it in comparison … yet that comparison is rarely made by ordinary consumers actually buying consoles!

Now let’s look at the iPhone / iPod touch. Apple have it wide open to third parties, especially games (which are unlikely to wind up in Podcaster trouble!), and have the best store, period. The hardware is superior to the DS and PSP so long as you can make it work. (The lack of ugly buttons all over the sides being of course the classic “gamer” complaint.) Apple don’t even have any first party games to get in your way and steal your thunder, like say … oh: Nintendo does time and time again!

The touch platform is going to be a wild success in gaming. Small outfits can finally reach market without selling their soul, and their house. Big companies like Sega and EA have no qualms. The only firms we won’t be seeing titles from I suspect are of course Sony (think Ico) and … drumroll … Nintendo. It’d be nice to have both of those: but NO ONE has both of those! Such is the nature of the business.

4 John Muir { 10.01.08 at 8:25 am }

“Apple has finite resources, the gaming market has finite sales, and serious PC gaming titles have a short lifespan”

Goodness: is that true! I have a few gamer friends who, as often as not, will be “that was so last week!” about a title I’ll have only just heard about … being retired from their scene. Just to think of all the capital and effort which goes into these games – the arts are the biggest part of it – and for so short a moment in the sun. It’s no surprise to hear teams like the makers of Crysis declare that they will make no more PC exclusives. It’s a platform which is still alive in this weird, furious, sense just as it also happens to be sinking…

5 Brau { 10.01.08 at 8:35 am }

“2. The App Store is Doomed Over 6 Canceled Apps”

Clearly over-reaction, but let’s go back a bit to when Steve Jobs walked out and unveiled the rev 1 iPhone. The place erupted when he said “and it runs OSX” because everyone knew what that meant. Then he announced this wonderful device would be constrained to web-apps … and you could have heard a pin drop. The result was so profound that Apple had to do two things I’ve never seen them do before:
1. Drop the price of the iPhone
2. Break their usual secrecy by announcing that it would eventually be opened to third party native apps.

Only after this announcement did sales really take off on the promise the device would be fully open.

When the iPhone3G was announced at WWDC, many devs asked if Apple would allow certain apps (IE: VOIP,iChat) and Steve’s response was terse, “So write one!”, clearly giving the impression the phone would be completely open to competition.

Now we are seeing Apple (for reasons unknown) denying viable apps if they seemingly don’t like them.

One can claim legalities and Apple’s right to do so under their NDA, but this is not about legalities. You can simply blow it all off by implying developers can’t read the fine print but it’s not about that either. It’s about human politics and moralities where few like to feel they are being watched over and artificially limited by big brother Apple. It’s a real bad reputation to get over a few stupid novelty farty apps.

Since I bought my iPhone, only one person has asked how I like it and the rest (even some Mac fans) all say they wouldn’t buy one simply because they have heard Apple controls it too much. Ouch. I have to agree though because I would have wanted Podcaster, Netshare, and yes my 3yr old nephew and I would have had a grand time playing Pull-My-Finger.

Does it mean the App Store is doomed if Apple stays this course? Of course not. Apple will still sell tens of millions of iPhones. They just won’t be able to sell billions of them, as they clearly should on such a halo device … and for want of what? … a little less misdirection and better communication?.

6 Jeff C. { 10.01.08 at 8:50 am }

Saying the iPhone “compares well” against the Nintendo DS is the same as saying it “compares well” against a Macbook.

In both cases the iPhone can do many similar things as the other device, yes. But in neither case is the iPhone an actual replacement for the other device. I doubt anyone is ditching their laptop just because they bought an iPhone. Same thing with the DS.

So I don’t think the word “competes” is really applicable here.

I’ve gotta ask…do you ever play video games on any of these systems? Because I don’t see how you can think this way if you’re actually familiar with each of them.

7 Realtosh { 10.01.08 at 9:11 am }

@ Cataclysm

Thanks for your post. You bring in a lot of gaming industry context.

However, OS X will become a very successful gaming platform for one very important reason — there will be so many sold units. Tens of millions. You complain that iPhones come with service plans, but never acknowledge that the iPod touch has no such restriction negating any reason to even bring it up.

The large numbers of units that can nicely accommodate gaming will bring lots of developers looking to make a profit. The iPhone/iPod interface may differ from traditional portable gaming interfaces, but so does the Wii. And it’s selling like hotcakes. The same will happen with iPhone/iPod and the games that will serve that platform.

8 trainwrecka { 10.01.08 at 9:38 am }

Um…
Without true buttons, taking the iPhone as a serious gaming platform is laughable. It is great for things like Texas Hold ‘Em and Monkey Ball, but something like Zelda would require a bit more.

That being said – you said their focus is on casual gaming. It is set to become the best casual gaming system.

9 Realtosh { 10.01.08 at 9:42 am }

@ danieleran

Verizon EVDO iPhone Just Around the Corner

I agree with your premise, but little else of your argument. We won’t see a CDMA phone right away, but only because of the ATT agreement. Once that agreement runs out, it makes sense for Apple to make iPhone available to all networks in both formats. The main reason is that 4G will likely not come fast enough. Unless 4G can be standardized, adopted, and deployed widely in the next 2-3 years, Apple will be leaving dollars on the table.

Even 3G (of the HSDPA/UMTS variety) is not yet so widely deployed outside of Europe that Apple delayed releasing 3G on iPhone for over a year after first announcing iPhone.

I agree that at the moment Apple won’t bother with CDMA, until they get HSDPA working properly. Apple never makes 2 bad products, instead of 1 great one. But soon they’ll get their radio issues resolved.

Apple needs to develop a CDMA phone eventually. They may even make it available prior to a Verizon deal even being possible. There are nearly 500 million CDMA subscribers around the world. Less than half those are in the US. It makes sense to deliver the CDMA phone when the US market finally opens up, but entire world does not necessarily revolve around the US market.

But my prediction is that whenever the ATT deals runs out within 1-2 years, Apple will make iPhone available on all US carriers and all over the world in both formats.

GSM may make the mot sense at the moment, but Apple will go with the flow with whatever technologies are widely deployed as any successful phone manufacturer does.

If Apple intended to stay a small niche player in the cell phone business, they might have stayed with one carrier per market, and on only one technology. But Apple has much bigger plans. RIM and Nokia should be shaking in their boots.

Within 5 years, Apple will have iPhones in various form factors, similar to the iPod business today) running on both cell phone formats, and preparing for the 4G technology that will be just around the corner for most of this time frame.

By the time 4G comes around, Apple will have made billions in both GSM and CDMA phones and will be taking the other cell phone makers to the cleaners. Apple will have the highest selling phones on most carriers. Other manufacturers will be making lower profit Android phones, and totally confused by the Apple success in their own industry.

10 greendave { 10.01.08 at 10:03 am }

Daniel, I am not sure where you found the expression “iPhone Games Can’t Compete”. Also, Cataclysm lost the plot when he classed the iPhone/iPod Touch games as “Cell Phone Gaming”. Difficult to read further when someone undermines their own credibility.

Apple is not trying to “defeat the opposition”, they are trying to sell iPhones and iPod Touches. They have made them much more attractive purchases by allowing 3rd parties to develop and sell games for them. It is not exactly rocket science. I have not chosen to buy an iPhone rather than a Wii/Xbox/DS. However, I have bought several games for our iPhones and Touch, and love playing them (which I have never done previously on my mobile phone in 15 years) – and I had not bought a computer game since Sega Rally on the Saturn.

Apple didn’t stop me from buying a games machine, I wasn’t about to, but they did get me to start spending on games and I will be buying a lot more. I will also be upgrading to the next iPhone – I just want someone to produce a comparable product/eco-system to spur Apple into improving the iPhone. Which reminds me, isn’t that new Nokia Tube due out today?

11 Scott { 10.01.08 at 10:40 am }

@ Cataclysm

Will you pease re-read Daniel’s piece and then read you comment. Then please tell me who is “a swimmer who is happily paddling in the shallow end but goes too far and begins drowning. “

12 Scott { 10.01.08 at 10:58 am }

@ Jeff C.

“Saying the iPhone “compares well” against the Nintendo DS is the same as saying it “compares well” against a Macbook.
….So I don’t think the word “competes” is really applicable here”

Would “substitute” do for you?

“In economics, one kind of good (or service) is said to be a substitute good for another kind insofar as the two kinds of goods can be consumed or used in place of one another in at least some of their possible uses. Classic examples of substitute goods include margarine and butter, or petroleum and natural gas (used for heating or electricity). The fact that one good is substitutable for another has immediate economic consequences: insofar as one good can be substituted for another, the demand for the two kinds of good will be bound together by the fact that customers can trade off one good for the other if it becomes advantageous to do so. Thus, an increase in price for one kind of good (ceteris paribus) will result in an increase in demand for its substitute goods, and a decrease in price (ceteris paribus, again) will result in a decrease in demand for its substitutes. Thus, economists can predict that a spike in the cost of wood will likely mean increased business for bricklayers, or that falling cellular phone rates will mean a fall-off in business for public pay phones.”

http://en.wikipedia.org/wiki/Substitute_good

iPhone and/or iPod Touch are (perfect, maybe not) substitutes for a PSP or Nintendo DS! So when people cannot 1) find a DS/PSP, 2) Cannot afford a DS/PSP 3). Cannot afford the games for DS/PSP – they are usually pricier (or 4). Already own an iPhone/iPod Touch) they will consider and might substitute by buying an iPhone or iPod Touch.
Lastly, an iPhone and iPod Touch are so much more than a Nintendo DS or PSP, making them as far as I am concerned more than perfect substitutes for!

13 Johannes { 10.01.08 at 12:17 pm }

@Cataclysm

“Most PC Gaming is not done through the traditional store boxes anymore but entirely online.”

I can only say WoW.

14 John E { 10.01.08 at 1:26 pm }

Cataclysm did a good job of summing up the past-up-to-now story of gaming. and yes, the iPhone/Touch does not fit into those models and so will not “succeed” on those terms. but that’s the point Cataclysm misses – the iPhone/Touch is a new model for casual gaming, just like the Wii is a new “family” model of console gaming. and just like the Wii is wiping the floor with the old-style XBox/PS3, outselling both combined, so will the iPhone/Touch with the PSP (the DS is mainly for kids).

here are the key “disruptive” innovations of the iPhone/Touch for casual gaming that literally change the game overall:

- a very different UI. yes, there are no buttons and toggles for control, so games that absolutely require those cannot be ported to iPhone/Touch. but anything that can be adapted to touchscreen and tilt control will be, because those developers can then sell a lot more of them (duh! like they don’t want to sell more of them?), and a whole new generation of games based on those controls are being invented now too, just as happened with the Wii.

- bear in mind, most people over 30 feel ridiculous using a standard hand held game controller. providing other kinds of controllers is a big part of the Wii’s multi-generational success. likewise with the iPhone/Touch touchscreen, us oldschoolers are not embarrassed to be seen using one. and we have money to spend.

- most disruptive of all, the dramatically lower prices of the iPhone/Touch games. the up-to-now business model of gaming is based on high prices for games. so PSP games cost from $10-$30, averaging at least $20 each. whereas App Store game prices run from $1-$10 (plus a growing number of free demos), averaging less than $5. it isn’t just that you can afford to buy four or five times more games with the same budget, you also are much more willing to take a chance and spend just $5 on a game to see if you really like it. thus in the end, iPhone/Touch owners who enjoy games will wind up spending more in total buying them than PSP owners do. it’s the volume sales business model instead, something very new in the gaming world.

“hard core gamers” like Cataclysm tend to think they are the only people who matter in the gaming business (plus kids of course, but that’s a special category). well, up to now that has been largely true. but first the Wii and now the iPhone are opening up “casual gaming” for the rest of us. and things won’t be the same. there are a lot more of us.

next year, expect the iPhone/Touch to push the PSP in the USA into just the kids games market (Sony wants to morph the PSP into a multimedia/entertainment device, but that ain’t gonna fly).

and if Apple would just link the iPhone/Touch to your big screen TV via AppleTV, then suddenly there would be a fourth new living room game platform alongside the Wii, XBox, and PS3 – and the first of a new “fourth generation.”

15 addicted44 { 10.01.08 at 1:50 pm }

@cataclysm

I did not read your entire post (too long!!!) but I will partially contest 1 issue.

The iphone does not compete directly with the DS, but that does not mean it is not stealing sales from it. In other words, no one who is looking for simply a portable game player will go buy an iphone instead, but someone who owns an iphone is far less likely to buy a DS. I have seen this personally, where a kids parents did not let him get a DS because he had an iphone. The way they looked at it, he could play games on the phone, so what was the point in spending additional money on getting a portable game system.

16 Realtosh { 10.01.08 at 1:59 pm }

@ John E

“and if Apple would just link the iPhone/Touch to your big screen TV via AppleTV, then suddenly there would be a fourth new living room game platform alongside the Wii, XBox, and PS3 – and the first of a new “fourth generation.”

I have a feeling that Apple is working on this. It’s just a feeling mind you, but Apple has been looking for ways to add value to the AppleTV. And this is the kind of flashy innovative new uses of their existing infrastructure that the folks at Apple like to do. I would expect something like that at some point.

I’d also like Apple to incorporate a digital tuner into AppleTV to take advantage of the digital switchover happening in the US broadcast market.

I don’t expect them to do so. Apple has always kept tuners out of their products, that would compete with their digital distribution marketplaces. Bit it would be nice if they jazzed up the AppleTV with a few more reasons to buy it.

And it is implied that with any digital tuner, you would automatically have to get a DVR also included in the product.

One can dream.

17 Khürt { 10.01.08 at 2:51 pm }

To @ addicted44′s point. My son has a Nintendo DS and yet WILL bug me to get on my iPod Touch to play Enigmo and DOES run down the battery playing games on the iPod.

18 bregalad { 10.01.08 at 3:11 pm }

John E and addicted44 have it right. This is a whole new gaming platform aimed at the billions of people who aren’t “gamers”. They’ll buy the hardware for non-gaming reasons and then discover they can have fun little applications for less than $5 each. Pure genius.

Up until today I firmly believed AppleTV would never succeed, but it might as the link between the iPhone/Touch and a large screen. Still, for AppleTV to become the iPod of the living room it will somehow have to get around a seemingly insurmountable obstacle: the ISPs control access to digital downloads. Bandwidth caps and penalties for heavy users are now the norm. Trying to replace all the content available on cable, DVD, etc. with downloads is completely unrealistic with today’s broadband speeds and pricing, and with the ISPs holding all the cards I don’t expect that to ever change.

19 nat { 10.01.08 at 3:54 pm }

The iPhone/iPod touch really appeals to me as a gamer because while I play a lot of… large-scale games, I guess you’d call them, on my Wii and my 360 (generally the latter more than the former), I’ve never been able to count more than a handful of games I wanted to play on the DS or PSP. I owned both, returned the original DS right after buying it on launch day (very uncomfortable, bulky, and lacked any alluring games on the horizon), and sold the PSP after a few months to a local game shop (hated the UMDs and there were far too many PS2 ports).

The App Store just launched and already there are games I’d like to play, namely those that involve physics puzzles. The price is right on most of them: $5-$15! And never do I have to handle little cartridges or discs. Just today they released Linerider for $3, which seems like a perfect fit for the device and something I normally wouldn’t play in a computer web browser. I don’t always want a deep and time-consuming experience, especially on a handheld.

20 nat { 10.01.08 at 3:57 pm }

Oops, and by “Just today they released Linerider,” I mean September 26th. :D

21 nelsonart { 10.01.08 at 7:47 pm }

I just bought my 1st iPod touch. All I can say is wow. After pruning my podcasts and photos and whatever else I could throw away, it pretty much holds what I want to view/show/play on the go.

As a gaming machine – something I thought was an afterthought – it’s awesome. The word games, blackjack, racing, poker… to me they are really well done and fun. Imagine this thing 5 generations out!

One personal drawback. For me, it’s a myth that I could quickly learn to type on that small keyboard.

I’ll be damned if a couple weeks hasn’t gone by and my typing still sucks on it. I’m going to buy that stylus and pray a little harder that Apple will allow text input to occur in horiz. mode. I tried to have a chat with my wife the other day and I might as well have had pickles for fingers.

Lastly, I’d say it’s a myth that the speaker on the touch is tinny and crappy and not powerful enough for gaming. Or at least it’s a partial myth. The guys at Asphalt 4: Elite Racing have figured out how to maximize the sound. It’s impressively loud when playing.

On the other hand, some of my podcasts can’t get half as loud.

It’s a toss up.

22 The Mad Hatter { 10.01.08 at 7:53 pm }

A lot of people aren’t paying enough attention to the Touch. If Apple as sold as many of them as I think, it’s going to have as big an impact (if less visible). No, it’s won’t wipe out the DS. It will hurt the PSP though I think (my son bought one, and hardly ever uses it, he uses his Touch all the time).

Now consider Apple using the same APIs for Apple TV. Again I don’t see this hurting the Wii. I do see it hurting Sony and Microsoft though. Hardcore gamers won’t switch of course, but are there enough Hardcore gamers to support the PS3 and XBox 360?

23 bendover { 10.01.08 at 9:02 pm }

Dan.. On Verizon EV/DO, you’re an IDIOT!!!!!

Verizon has the #1 network in terms of quality according to BOTH JD Powers & Consumer Reports and has for YEARS! Verizon is merging their network w/ Alltel, a regional CDMA EV/DO carrier who holds the #1 network quality spot in their markets & bumps Verizon to #2 in those markets…. Combined, they will be by far the largest US carrier…

Meanwhile, AT&T’s network ranks DEAD LAST or SECOND TO LAST in EVERY region of the country for network quality on BOTH surveys…

I ought to know, I switched from Verizon to AT&T to get the iPhone and AT&T BLOWS! I had 6 drops on 1 PHONE CALL last week and I’m here in the New York metro area… Look at the posts on the blogs…. There are an awful lot of us that would either migrate immediately to Verizon or buy our first iPhone, who otherwise would not move to AT&T…..

I can tell you, absent an EV/DO iPhone, I’m getting a Touch and going back to Verizon…. My iPhone is a beautiful device, but thanks to AT&T I can’t make a F’ing phone call!

EV/DO has hundreds of millions of subscribers throughout the world… The second largest and fastest growing carrier in Japan, KDDI, is a CDMA carrier (where Apple is having a sales problem as they are on the weakest carrier, Softbank)… CDMA is also in South Korea, China (China Telecom was just given Unicom’s CDMA network in China and are authorized to roll out EV/DO), and lest we not forget the best networks in Canada, compared to that horrible, AT&T-inspired Rogers POS network…

Why don’t you do some RESEARCH before opening your pie-hole and proving to all of us your cluelessness!

Additionally, Apple picked a dysfunctional chipset for the iPhone 3G, which explains a lot of it’s performance problems…. If they migrate to a Qualcomm chipset, they can move to a chipset that supports ALL 3G technologies and therefore build one phone for all networks (duh!)

Additionally, how can Apple dominate smart phones by being on the poorest network? RIM makes phones for all 3G technologies and all networks.. please explain… especially when there are many people like me that when my contract is up, I’m outta here & back to VZW… I’ll use my Touch over WiFi and send my iPhone to the big recycling bin in the sky….

[I'm not sure what you're taking issue with. I noted that CDMA2000/EVDO was better built out in the US last year than AT&T's UMTS currently is (and far better than TMobile's G1 network!), but you seem to be missing the fact that going through the work to develop a CDMA2000/EVDO iPhone would do nothing to help Apple at this point.

You mention the "hundreds of millions" of EVDO subscribers around the world, but which of these are better served by an EVDO iPhone over a UMTS iPhone? And did you note your own comment, which threatens to trade in your iPhone for an iPod touch? How dangerous of a threat is it to Apple that it will sell iPhone 3Gs to as many people that will buy from UMTS providers, and everyone else will buy a touch? Where is the downside?

Also, while I'd like to have better 3G reception, I wouldn't trade by AT&T iPhone for a Verizon iPhone that had WiFi disabled and forced me to run BREW applets instead of offering the App Store, VCast garbage instead of YouTube and Internet video access, and a $10 monthly fee to use GPS maps.]

24 Michael { 10.01.08 at 9:12 pm }

@nelsonart

I have pretty big fingers, but I think you have to get used to pointing at the letters on the keyboard rather than mashing them like you do on your old phones. The key difference with the iPhone and iPod touch is that their touchscreen is very very accurate… it’s just that you have to touch it in the correct place with your finger, and not expect it to work wonders when you don’t or try to mash it. Btw, mashing doesn’t work on the iPhone, it usually makes the reading more inaccurate to mash the keyboard, so you have to tap it.. and eventually, you’ll get used to tapping it in the correct spots and get faster :) I know I did :)

25 Dorotea { 10.01.08 at 9:50 pm }

I am not a gamer and haven’t bought any games for PC for many years. I have however bought 3 app store games. Love em. Apple found a new market.

26 nat { 10.02.08 at 12:08 am }

We’re also leaving out some of the App Store’s game-related apps. Like leaderboard apps, game review apps (IGN has a custom app for browsing all their game reviews and if there’s an accompanying video review, those play too; marketed as a way to check on the spot whether a given game in a retail store is worth the money), and even apps that interface with Microsoft’s own Xbox Live (one example being 1337pwn, which is also available in Dashboard widget form, recently passed the 1 million user mark thanks to the popularity of the iPhone/iPod touch version of the app).

So Daniel, not only does the iPhone appeal directly to casual gamers, it also has an indirect appeal to core gamers.

27 snafu { 10.02.08 at 3:39 am }

OK, the new iDS is thinner (no cartridge slot), has bigger screens (both of them multitouch ones), SD card reader, two cameras (photo and webcam), web browser, Wii connectivity and an online store. Not bad.

28 airmanchairman { 10.02.08 at 5:57 am }

IMHO it’s a win-win situation for the traditional console gamer platforms like Nintendo and Sony, the mobile gaming platform as sensationally revived by Apple Inc, game developers and the most important sector of all, gamers themselves.

Users who previously have had no particular interest in gaming may have downloaded a few from the AppStore in the wake of the iPhone/iPod Touch buzz out of interest or to show off their new toys’ capabilities. And now the blogosphere is awash with anecdotes about the addictive nature of some of these games.

Expect a stream of new gaming adherents and addicts to make the crossover into console (and hardcore) gaming, and this will be a plus all-round. Where the demand grows, development effort (hence innovation) will as well.

This may be wishful positive thinking on my part, but I am almost 100% sure for instance, that one day in the future we will hear a commercial or jet fighter pilot claiming that the inspiration for their career choice came from playing X-Plane on the iPhone (“remember that blast from the past?”) :-)

29 John Muir { 10.02.08 at 6:55 am }

@nelsonart

I’ve never owned a smartphone or PDA and didn’t have any reason to expect the iPod touch keyboard to be anything but tricky to master. Yet I took to it like a fish to water. I was two thumb typing on day one, but feel more comfortable in single finger mode overall. A nice surprise for me anyway.

I showed it off to a PC techie friend who thought (naturally) that I’d wasted my time. He duly couldn’t keep his hands off it and ran the battery down over the course of the evening! I noticed that he was trying to use his nails to type … which I convinced him not to after I led him off to other controls in the hope that he’d get a feel for them. After a few hours he had mostly figured it out: the touch is smart enough to recognize a LARGE contact patch. It’s not your job to pole about ever so carefully! Also: autocorrect is damn good.

He’s been a Creative MP3 holdout for years, forever criticising my little old 1st gen iPod nano for not supprting Plays4sure. He also thought his Nokia phone was pretty near until now. After that protracted demo he was asking me about iPhone contract pricing.

(Typed on a touch! As most my comments here are now. Totally love the reading experience, while practicing the writing. 20 WPM here we come!)

30 John Muir { 10.02.08 at 6:59 am }

Corrections:

pole = poke
near = neat

Not too bad after a couple of weeks of ownership. I’ve never felt the slightest bit at home with anything other than a full sized keyboard before this.

31 John Muir { 10.02.08 at 7:07 am }

Re: AppleTV

I find it hard to see what people have in mind for it as a console. The DS and PSP were easy to outclass in hardware as well as software. The PS3 and 360 not so much. The Wii if course proves it’s possible to win from behind: but how? A new controller paradigm?

Is it not really the AppleTV you guys are talking about so much as the ApleTV being controlled by iPod touch controllers?

By itself, the AppleTV will have the same drawbacks as the Mac for games developers: no MS DirectX and (so far) limited numbers. The touch platform has blown that away with something entirely new. The Wii did too. So what’s the new thing with the AppleTV?

32 snafu { 10.02.08 at 9:09 am }

CORRECTION: actually only one of the DSi’ screens is a touchscreen
http://www.reghardware.co.uk/2008/10/02/nintendo_dsi_launched/

33 Janus { 10.02.08 at 9:44 am }

there will be no EVDO phone. EVDO is a dead end technology. Even Verizon is switching to the GSM standard for their 4G network (LTE). The wireless wars are over. The GSM Association won and CDMA2000 lost. Get over it.

34 John E { 10.02.08 at 1:17 pm }

@J Muir

yes, it’s using the Touch as a new kind of remote control for games, web, and apps that are displayed on a TV via AppleTV that would be revolutionary.

There are two reasons only a small percentage of consumers will ever have an HTPC setup: (1) it’s one more complicated OS/software bundle in the house for someone to maintain, and (2) you really need a keyboard/mouse/trackball for it (plus a game controller too), and that is just not sofa-friendly.

(And game console, CATV/TiVo, and even AppleTV remote controls are even worse. moving a cursor around an on-screen keyboard tediously to spell words/urls is hopeless for everyday use.)

The Touch/iPhone dramatically would solve these problems. (1) Apple has totally simplified its OS, apps, and maintenance via iTunes interface, removing that consumer barrier. (2) it would be the world’s most sophisticated remote control ever with multitouch and virtual keyboard (and no additional game controller needed), in a size that is perfect for the sofa.

the simplest mechanism would be for the Touch to transmit its screen image via wifi to the AppleTV, which would then upscale it and sharpen the image for TV display. the other way would be to install duplicate Touch OS/apps on the AppleTV and just have the Touch send it the UI commands via wifi. i dunno which, it’s a technical question.

anyway, whatever company figures out the problem of easily controlling digital everything from your sofa with a remote control that is actually fun to use will win the “convergence” war for the living room. Apple is so close, if Steve J. is just willing make this last connection.

35 nat { 10.02.08 at 3:20 pm }

@snafu,

Also, the DSi’s single touch screen is the same kind of screen as before. The video Nintendo showed of it at the news conference featured a stylus, so I doubt MultiTouch gestures are in there.

What I find interesting is Nintendo’s new support for AACs as the only supported audio format on both the Wii and now the DSi. Surely they recognize the popularity of iTunes, but no doubt, they also realize that nothing can play FairPlay protected AACs outside of iTunes or Apple’s devices. So where’s the motivation? Are AACs “big” in Japan? Do they think most iTunes users buy iTunes Plus tracks or know how to remove the DRM’ed songs they do have (by ripping a CD of the songs and then re-importing them)? It’s one thing if they supported AAC in addition to MP3, but that isn’t the case. I remember the original Wii firmware supported only MP3s and then they released an update that replaced that compatibility with AAC.

Whatever the reason, it’s pretty cool and forward thinking of them. The DS Lite and DSi are obviously influenced by Apple’s MacBooks, so maybe that’s a clue, who knows?

36 Myth 6: iPhone Developers will Flock to Android — RoughlyDrafted Magazine { 10.02.08 at 6:09 pm }

[...] Myths Five More iPhone Myths Myth 6: iPhone Developers will Flock to Android . 6. iPhone developers will flock to [...]

37 indiana61 { 10.02.08 at 7:18 pm }

@Brau
“Since I bought my iPhone, only one person has asked how I like it and the rest (even some Mac fans) all say they wouldn’t buy one simply because they have heard Apple controls it too much. Ouch.”

I am sorry Brau but I find this statement confusing, I think my confusion comes about because RDM is a tech analysis blog and I am not a tech. It seems all commentators here are heavily involved in the tech/programming side of life. I am purely a consumer with a slightly better than average understanding of technology (but not much). I have asked a number of average consumers (friends and relatives) who have an iPhone how they like it and not one has ever mentioned Apples percieved control of the device. In fact I would be suprised if the average consumer gives a tinkers cuss or a rats arse about that issue.

“I have to agree though because I would have wanted Podcaster, Netshare, and yes my 3yr old nephew and I would have had a grand time playing Pull-My-Finger.”

Again, I doubt the average consumer knows what a podcaster, netshare or pull my finger is! Would have, could have, should have are not definates. I would have purchased a Zune if it yadayada…

It is amazing to watch somebody pick up an iPhone/Touch and use it for the first time, at first there is a look of mild frustration because it is not what they are used to, followed by a “oh I get it” expression, then there is a look of awe and they can’t put it down. You can actually see them contemplating how they can fit the purchase of one into their budget and as they walk off they look around again and take a last look before they leave the store. That is Apples magic. No considerations of gee I want one but Apple controls the device too much for my liking and golly I wish it was truly FOSS friendly.

It will be the entertainment value (music, video, photos) and the user interface to those features that will be the primary driver of iPhone/Touch sales.

38 John Muir { 10.02.08 at 7:46 pm }

Exactly.

39 John Muir { 10.02.08 at 7:52 pm }

@John E

I think Daniel already covered part of that with a concept he called iPhone Remote, if I recall. Basically he predicted the iTunes Remote control app months before it came out, and extrapolated it to a whole host of standards compliant household items.

As for iPhone / touch as controller for an AppleTV console: I’m not sure if players would want to be looking at their controller when there’s also a big TV screen. If the touches are just being used for accelerometer control like Wii controllers, they’re being wasted. If however they’re being used for private information: like say a player’s hand at a poker game such that players can actually have private information in a party environment at all … I guess that could work. The whole thing just seems a bit inelegant to me. The iTunes Remote is sweet because it’s all about disposing of the big screen, and giving you a home-wide walk-around control.

40 The Mad Hatter { 10.02.08 at 7:57 pm }

Coincendentally one of my co-workers got an IPhone yesterday. Today he was bitching about the lack of control he had. He’s already been looking into Jail Break apps, I’m going to follow what he does with the phone.

41 Myth 7: iPhone Buyers will Flock to Android — RoughlyDrafted Magazine { 10.03.08 at 1:30 am }

[...] Myths Five More iPhone Myths Myth 6: iPhone Developers will Flock to Android Myth 7: iPhone Buyers will Flock to Android . 7. [...]

42 Cataclysm { 10.03.08 at 2:56 am }

@ John Muir

You talk as if the game industry is some sort of Risk game board. In the game industry, publishers are console agnostic. They go where the installed base is. It snowballs over the cycle. Wii has no problems with third party support, and it is the console with the most exclusives.

Sony and Microsoft are the anomalies in the game industry’s long history. First party game companies crafted the hardware, molded it, and the first party games always led the direction for that console. This tradition goes all the way back to Atari. But Sony has been more interested in turning the game console into an entertainment computer which enraged Microsoft which is why they entered the market to stop Sony. (Even as Wii long surpasses in sales, Microsoft’s sights is still at stopping Sony in their entertainment computer quest.)

You say the superiority of the hardware of iPhone makes it better for games than the DS and PSP. Considering that both the DS and PSP are almost half a decade old already, the biggest fallacy in the gaming industry is that hardware defines sales or software. Every generational cycle has the weaker hardware ‘winning’ in sales. As for software, the larger library wins (which follows the hardware with the largest sales).

No one really buys game consoles. They simply buy the hardware to get to the software. Except for the recent quirky Sony consoles with their pushing of Blu-Ray and all, it is guaranteed that 100% of game console buyers are… gamers. However, this cannot be said about the iPhone or iPod Touch. I’m not saying this to knock them. But they would be better defined as handheld computers rather than handheld game systems. Yes, you can play games on handheld computers. But the iPhone compares to the DS / PSP in the same way as PC gaming compares to the tv connected game consoles.

The most accurate way to describe iPhone gaming would be as ‘handheld PC Gaming’ as that is what the iPhone is, a handheld PC. It is a totally different league than dedicated handheld game machines. The latter’s hardware is molded specifically toward gaming while the handheld PCs are not.

I enjoy PC gaming and console gaming as both offer different experiences. The same will be true of handheld PCs and handheld game machines.

@greendave

You said: “Also, Cataclysm lost the plot when he classed the iPhone/iPod Touch games as “Cell Phone Gaming”. Difficult to read further when someone undermines their own credibility.”

Apple is aiming the iPhone to compete against opposing smartphones and other cell phones. Look at the 3G’s ads where they declare how much faster and better the 3G is to the competition. Apple is using gaming as part of that battle over competing smartphones and handheld PCs.

Apple has framed the iPhone into what is called a ‘red ocean’. It simply does what other smartphones do but much, much better. Another ‘red ocean’ would be the Xbox 360 and PlayStation 3. Sony and Microsoft are fighting each other to death.

Nintendo made a very interesting move of non-competition. The DS and Wii were designed to not compete but actively try to expand who plays video games. Iwata refers to this as competing against ‘non-interest’. This is why the new DSi has odd capabilities such as the AAC music meddling and the two cameras. DSi does not seek to compete against other devices that have cameras and music playback. DSi tries to give it a ‘Nintendo effect’ and turn those things into digital amusement (rather than a ‘game’ though games could result from such features).

In order for Apple to compete against Nintendo, it would have to mold hardware around the expressed purposes of gaming. Instead, Apple molds their hardware for the expressed purposes of PC use, be it desktop, laptop, or handheld (which is what the iPhone is). Apple is also busy fighting off other smartphones and handheld PCs.

This is why the game market that iPhone will cannibalize is cell phone gaming and other handheld pc gaming variants.

Daniel makes the mistake of citing ‘casual games’ for suggesting iPhone game success to eat into the DS or PSP. ‘Casual games’ is a slang that emerged from the gaming media and publishers as they had no genre or term to describe these unique games that were appealing to the new markets such as older people and women. Nintendo does not use the language of ‘casual games’, only ‘expanded audience’. Many game executives, from Peter Moore to Nintendo vice presidents, have come out against the word ‘casual games’ because it is extremely misleading.

And besides, what else can a handheld game be BUT ‘casual’ and ‘pick up and play’? One of the reasons DS won over the PSP, and why Nintendo has controlled the handheld gaming market for so long, is that handhelds demand a pick-up-and-play style of gaming. There is no such thing as ‘non-casual’ handheld gaming. It’s a freaking handheld. You’re not going to have huge cinematic type games on it. PSP tried this and it failed because it doesn’t match users’ behavior concerning a gaming handheld.

@Scott

“Will you pease re-read Daniel’s piece and then read you comment. Then please tell me who is “a swimmer who is happily paddling in the shallow end but goes too far and begins drowning. “”

I might come across as mean, but I only do so because I am a fan of Daniel’s site and his work on Apple. The game industry is not the tech industry. Gaming is in the entertainment business, not the technology business. The vast graveyard of consoles attests to that.

Daniel doesn’t respond because he knows the game market isn’t where he has focused his attention. That’s OK. The PC markets isn’t where I focus my attention. We all have our areas of knowledge where we are more knowledgeable.

@Johannes

It is true that the vast majority of PC gaming revenue is going to online. Not meaning WoW but to online portals and other digital distribution. Interestingly, the demographics of such users is mostly female. It is likely because of that audience existing is why Nintendo confidently could make something like the DS and Wii to tap into that type of audience.

@everyone

What iPhone and iPod Touch bring that is new is the beginning formations of the Handheld PC.

While gaming on these systems may seem novel, it is still PC gaming. What is novel is that it is HANDHELD PC gaming.

Comparing handheld pc gaming to handheld dedicated game consoles is like comparing desktop pc gaming to TV dedicated game consoles. They don’t encroach on one another’s market.

No one argues that PC gaming is competing against console gaming (as it has lived side by side with it for decades.) Yet, everyone is making the mistake of comparing handheld PC gaming to handheld consoles.

In order to compete with games consoles, you have to make a dedicated game console. We have seen Microsoft do this. And in order to compete with handheld game consoles, you have to make a dedicated handheld game console. Apple has not done this and has zero intentions to do so.

43 The Mad Hatter { 10.04.08 at 1:37 am }

An update – the guy who bought the IPhone did jailbreak it. However if he had of waited a day more he may not have bothered, because apparently most of his first day problems actually were due to not being used to the on-screen keyboard. Now that he’s getting used to it, he’s happier. We’ll see what he thinks next month.

44 Myth 8: iPhone will lose out to Steve Ballmer’s Windows Mobile 7 in 2010 — RoughlyDrafted Magazine { 10.05.08 at 10:08 pm }

[...] Five More iPhone Myths Myth 6: iPhone Developers will Flock to Android Myth 7: iPhone Buyers will Flock to Android Myth 8: iPhone will lose out to Steve Ballmer’s Windows Mobile 7 in 2010 . 8. iPhone will lose out to Steve Ballmer’s Windows Mobile 7 in 2010 [...]

45 Myth 9: iPhone Unable to Penetrate Europe Due to Symbian Dominance — RoughlyDrafted Magazine { 10.07.08 at 1:27 am }

[...] Myths Five More iPhone Myths Myth 6: iPhone Developers will Flock to Android Myth 7: iPhone Buyers will Flock to Android Myth 8: [...]

46 Myth 10: RIM’s BlackBerry Will Contain iPhone Expansion — RoughlyDrafted Magazine { 10.13.08 at 1:40 am }

[...] Myths Five More iPhone Myths Myth 6: iPhone Developers will Flock to Android Myth 7: iPhone Buyers will Flock to Android Myth 8: [...]

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