Report: Smartphones overtake handhelds in portable game revenue

A new study suggests that iOS and Android games have taken increased their mobile market share 30% in only two years, eating heavily into the business of the DS and PSP

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Nintendo's struggles to get a foothold with 3DS sales has been called a sure sign of changing mobile gaming habits, as more users switch to smart phones. Now data suggests that the combined market share of iOS and Android has jumped from just 19% in 2009, to a whopping 58% in 2011.

Mobile analytics firm Flurry (via VentureBeat) estimates that while the mobile platforms combined only made up about $500 million of the $2.7 billion in portable revenue in 2009, it's boomed to $1.9 billion of the $3.3 billion this year. Note, though, that this includes projections for November and December.

Flurry concludes that expensive carts in the realm of $25 or more are on the way out, as diminishing market share makes them less profitable. Android and iOS have made a lot of headway with cheaper, smaller experiences for only a dollar.

The study only seems to take DS sales into account, and doesn't make mention of 3DS sales. While the system has been slow, it might contribute to a stronger overall percentage if counted in the dedicated portable market. Still, the numbers suggest a shrinking market for console manufacturers, as Nintendo tries to gain 3DS momentum and Sony prepares to launch the PS Vita.

[Image courtesy of Flurry.]

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From The Chatty
  • reply
    November 9, 2011 12:00 PM

    Steve Watts posted a new article, Report: Smartphones overtake handhelds in portable game revenue.

    A new study suggests that iOS and Android games have taken increased their mobile market share 30% in only two years, eating heavily into the business of the DS and PSP

    • reply
      November 9, 2011 12:52 PM

      Maybe expensive handheld games are on the way out sales wise because there hasn't been a good one made in the last couple years?

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      November 9, 2011 12:53 PM

      'have taken increased their' :(

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      November 9, 2011 3:04 PM

      Maybe if handheld manufacturers forced gamers to contract 15 dollar a month data plans they would get back on top (the wrong way). Or better yet, move forward with WI-FI voice over IP, turn about is fair play after all.

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      November 9, 2011 3:55 PM

      I'd think its about convenience/accessibility. Those app stores make it way easy for someone who already has a smartphone to explore games & pay a trivial amount in comparison to portable gaming device games.

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        November 9, 2011 4:02 PM

        I think it's about the device being multipurpose. I have my phone on me always because it's my phone... If I get bored waiting around for something, my phone is with me, 3 taps and I've got a quick time waster that was already with me anyway.

        With a DS or PSP, you have to plan ahead to carry an extra device that serves only one purpose around with you all day, just in case you have downtime. Not only that, but both of those are way bigger than my phone and wouldn't be at all comfortable in my pocket.

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          November 9, 2011 4:07 PM

          [deleted]

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            November 9, 2011 4:34 PM

            I was going for the compare/contrast approach.

            Ironically, aside from sudoku, I don't really game on my phone. The screen is too small, and since most people seem to have moved away from phones with physical buttons, I have to have a finger covering half of my already tiny viewport at all times.. I strongly prefer gaming on my DS, but I hate carrying the thing with me... and paying 5-30x as much for similar quality games.

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      November 9, 2011 4:07 PM

      [deleted]

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      November 9, 2011 6:33 PM

      Proof positive that the human race deserve a swift kick to the groin.

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      November 9, 2011 6:38 PM

      An entire generation of people getting their first portable device that can play games and the revenue is just catching up? Sounds like a bubble.

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      November 9, 2011 7:05 PM

      Its definitely disconcerting to see Sony go the proprietary route with its Vita memory cards. The idea of market share" in this comparison is sort of a flawed concept though, because virtually every cell phone is going to run either iOS or Android, and their revenues are therefore sort of incidental.
      But it does augment what it means to be a "portable" dedicated gaming device. And I think it speaks in favor of Sony's strategy to tie handhelds closely to a console experience. In this smartphone future, a portable console is going to do better than a portable novelty device.

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      November 10, 2011 4:06 AM

      more people own phones, more people buy more games for phones.

      casuals..

      oh and..

      fuzzy wuzzy was a cat.
      fuzzy wuzzy in my lap.
      fuzzy wuzzy then jumped down.
      fuzzy wuzzy wuzzy, meow.

    • reply
      November 10, 2011 4:14 AM

      RIP Nintendo, time for Mario Kart 63 on iphone!!!

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