iOS and Android Grab 58% of U.S. Portable Gaming Revenue

[MacRumors]

Mobile analytics firm Flurry today reports on the continuing shift in portable gaming from dedicated devices to smartphones and other multipurpose devices. According to results compiled by Flurry from NPD market research and Flurry's own mobile app data, Apple's iOS and Google's Android mobile operating systems will account for 58% of portable gaming revenue in the United States for 2011, an almost exact flip-flop from 2010 when dedicated device leaders Nintendo and Sony held 57% of the market.

The most striking trend is that iOS and Android games have tripled their market share from roughly 20% in 2009 to nearly 60% in just two years. Simultaneously, Nintendo, the once dominant player, has been crushed down to owning about one-third of market in 2011, from having controlled more than two-thirds in 2009. Combined, iOS and Android game revenue delivered $500 million, $800 million and $1.9 billion over 2009, 2010 and 2011, respectively.

Flurry's data for 2011 is based on estimates for the final two months of the year, but suggests that the rapid growth in gaming on smartphone platforms is showing no signs of slowing. The market dynamics of free or low-cost games sometimes supplemented by in-app purchases and played on multi-function devices versus dedicated gaming devices with relatively high-cost game titles are clearly playing out in favor of iOS and Android. The result has been a surging gaming market increasingly attracting casual gamers willing to spend a few dollars to play on their phones, while established players have seen not only their shares but also their revenue declining each year.

Nintendo has been resisting increasing pressure to bring its games to the iPhone and other platforms, sticking by its long-standing tradition of making its games exclusive to its own hardware. Flurry suggests that the rapidly-shifting landscape of portable gaming may soon bring Nintendo face-to-face with a "Nokia-like" decision whether to jump over to smartphone platforms or watch its business erode away.

Article Link: iOS and Android Grab 58% of U.S. Portable Gaming Revenue

 

[d0mth0ma5]

Wow, that's one heck of a quick turnaround. What would be interesting however is the length of time that one spends gaming on a platform as a percentage of the total. I would imagine that the PSP and DS would make a comeback in that circumstance.

 

[SPEEDwithJJ]

I am not surprised.

With more & more people using a smartphone these days, be it on iOS or Android, & with lots of chances of buying games at prices for as low as $0.99 & sometimes even free (of course through legal channels such as iTunes), I doubt many people would be interested in paying like $29.99-$39.99 for new titles on the Nintendo DS &/or Sony PSP gaming platforms, except for exclusive games such as Mario Kart & so on.

 

[FakeWozniak]

Why combine iOS and Android when talking revenue? We all know the bulk of paid apps are iOS.

 

[mcarling]

iOS vs Android

The interesting question is how much of that was iOS and how much was Android. Sony and Nintendo don't matter anymore.

 

[ChazUK]

Wirelessly posted (Mozilla/5.0 (Linux; U; Android 2.3.7; en-gb; GT-I9100 Build/GRJ22; CyanogenMod-7) AppleWebKit/533.1 (KHTML, like Gecko) Version/4.0 Mobile Safari/533.1)

My daughter has a total of 5 Nintendo DS games whereas she has countless Android and iOS apps/games to play with on our iOS and Android devices.

Nintendo and Sony need to get on this app bandwagon.

 

[D.T.]

Yeah, given that the PSP and DS are within ~$70 of a Touch, it makes more economic sense to go with the iOS device once you factor in games.

Add the additional functionality like a music player, watching movies, a camera, iMessage, etc., and the "value" for a Touch really escalates over a dedicated portable gaming device.

This of course assumes you can convince your kids they don't need Pokemon

 

[Tailpike1153]

It may be me being stupid. But how does the head of Nintendo's DS division still have a job with marksetshare loss like that?

 

[Icaras]

I am not surprised.

With more & more people using a smartphone these days, be it on iOS or Android, & with lots of chances of buying games at prices for as low as $0.99 & sometimes even free (of course through legal channels such as iTunes), I doubt many people would be interested in paying like $29.99-$39.99 for new titles on the Nintendo DS &/or Sony PSP gaming platforms, except for exclusive games such as Mario Kart & so on.

I love how people are downrating you and I mean that sarcastically. Probably the usual lot of traditional gamers who are feeling threatened that their world is changing.

But I totally agree with you. I'm a huge Nintendo fan but I've skipped out on a number of 3rd party games already for the Nintendo DS and 3DS because they are available for iOS for a mere fraction the cost. And the exclusives, like you mentioned, are the only things keeping me from leaving the hardware.

The mobile gaming market, spearheaded by Apple and iOS is absolutely disruptive. Anyone not seeing that through these figures is just in plain denial.

 

[Dizzy11523]

Casual gaming kids are just getting weeded out. These are the same lames who fall for the Kinect gimmicks. Also, old folks who never carried a game around just happen to because they have a phone with an app store.

The only iPhone game I enjoy is Tetris. All the other games that try to be hardcore are somewhat of a cock tease.

Still love the PSP and the real gaming that is there.

 

[inkswamp]

Why combine iOS and Android when talking revenue? We all know the bulk of paid apps are iOS.

Because the point of view of the chart is mobile devices vs. dedicated gaming hardware so Android and iOS get lumped in together. That said, I too would be curious to see the breakdown on the mobile devices side.

 

[radge]

I just saw a job posting for an analyst.

Requirements:
1)Can type
2)Alive and breathing

 

[Stella]

I'm not surprised, cell phone gaming is a lot more convinient and cheaper than console hand held gaming. Although currently the games [ found in cell phones / smartphones ] tend to be a lot more cut down than games you'd find on gaming held consoles ; Though the gap is decreasing.

Nintendo will have to adapt so how or be edged out of hand held gaming.

 

[b11051973]

I bought my niece an iPod touch last year for Xmas. You can do so much more with it than a DS. Plus, the games are so much cheaper.

I had a second cousin I'd see every Xmas and for years he had a DS. Last year when I saw him, he had an iPod touch. Kids just can't afford $40 games.

 

[D.T.]

Nintendo will have to adapt so how or be edged out of hand held gaming.

Mario Universe iOS. I'm ready to buy

 

[Icaras]

I just saw a job posting for an analyst.

Requirements:
1)Can type
2)Alive and breathing

Funny but these are actual sales and data numbers compiled and not some joe trying to predict the future.

 

[z3r0]

Two things could happen:

1) Apple will buy Nintendo or
2) Nintendo starts creating iOS games

 

[inkswamp]

The mobile gaming market, spearheaded by Apple and iOS is absolutely disruptive. Anyone not seeing that through these figures is just in plain denial.

I don't deny that they're potentially disruptive but I think these charts may be overstating it. It is, after all, stated in percentages and Nintendo and Sony are both in a lull at the moment. Nintendo is at the end of a long hardware cycle with the DS (where no compelling titles are coming out) and at the beginning of the 3DS where adoption has been slow. I'm not saying that's all irrelevant, but this chart puts iOS and Android up against the gaming devices at a low point so I'm not sure how "absolutely disruptive" mobile gaming really is.

 

[Stella]

Two things could happen:

1) Apple will buy Nintendo or
2) Nintendo starts creating iOS games

IMO, (2) is more likely - too much baggage comes with Nintendo for Apple to buy.

 

[blackpond]

The dawn of the indy game developer. This is poetic justice.

Anyone that's ever looked into developing for PSP, Nintendo DS or the Nintendo/Sony consoles understands what a true walled garden looks like...

 

[Dizzy11523]

These numbers are pretty much worthless. Like I said, people who are not into gaming just happen to download Android games and iOS games cause their phone can.

Nintendo is safe and so is Sony. In my opinion, their future is actually looking brighter as they continue to come out with new hardware.

Fact is, they got the games and games is KING.

 

[JustinDaigle]

IMO, (2) is more likely - too much baggage comes with Nintendo for Apple to buy.

I'd agree... but Iwata was rather adamant that he'd rather his company commit suicide than surrender.

More likely:
3) Nintendo becomes irrelevant, goes out of business, and five years from now, nobody under the age of twelve will know what it was.

 

[cdinca]

an almost exact flip-flop from 2010 when dedicated device leaders Nintendo and Sony held 57% of the market.

???

 

[lilcosco08]

Two things could happen:

1) Apple will buy Nintendo or
2) Nintendo starts creating iOS games

Or neither. Nintendo is fine doing what they do best.

 

[blackpond]

These numbers are pretty much worthless. Like I said, people who are not into gaming just happen to download Android games and iOS games cause their phone can.

Nintendo is safe and so is Sony. In my opinion, their future is actually looking brighter as they continue to come out with new hardware.

Fact is, they got the games and games is KING.

In most businesses revenue is king.... that chart isn't showing number of downloads...