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iPhones squeezing handheld games market

iPhones squeezing handheld games market

iPhone gaming is threatening Nintendo and Sony's dominance of the handheld console market, new figures show.

In 2009 the iPhone and iPod Touch platforms were able to take a fifth of the handheld market in total, which is up by 15 per cent over the previous year.

Analyst firm Flurry came up with the figures by calculating the revenues generated by paid-for apps and thus the statistics are accurate as they ignore the free, light-weight games which clog the App Store's catalogue.

The PlayStation Portable (PSP) is the biggest loser in the wake of the iPhone's rise to power, as it now accounts for just 11 per cent of the mobile gaming industry, which is nine per cent less than its 2008 share.

Nintendo saw a less significant fall, as it managed to hold onto 70 per cent, down five from 2008. A revamped Nintendo DS is also in the works, which could see a resurgence in Nintendo's position in the sector.

Conversely, some observers believe that the iPad will allow Apple to encroach even further on the mobile gaming market, although you may wonder where the line between mobile gaming and laptop-based gaming is to be drawn.

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