iPhone games make more money than PSP games

In news that may not surprise anybody, new figures have revealed that iPhone/iPod games are raking in more cash than PSP games. Considering the fact that gaming isn’t the iPhone’s primary function, this is still pretty considerable news, no matter how obvious it may be. 

According to an NPD data analysis, the iPhone is now responsible for 19% of all revenue generated by handheld games (as of 2009), compared to the PSP’s 11%. Obviously, the DS still reigns supreme with 70%.

The report also claims that Apple had a mere 1% stake in overall game industry revenue during 2008, and that it grew to 5% in 2009. Put short, Apple is making a significantly growing dent in the videogames business, whether you think that’s good or bad. 

A lot of this must surely come down to the distribution model. Charging under five bucks per game is going to appeal to anybody. Compare that to the PSP, where even its budget-themed Minis range of games can cost anything up to ten bucks, and it’s no surprise that the iPhone is starting to kick the PSP’s arse. Until Sony works out a way to make downloadable games cheaper and appear to have more value, it will keep losing market share to Apple. Its distribution method simply sucks in comparison. 

Apple iPhone and iPod touch Capture U.S. Video Game Market Share [Flurry]

Jim Sterling