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iOS & Android overtake Sony and Nintendo in portable market in 2011 (gaming revenue).

11-09-2011, 05:47 PM
#1
👮 Spam Police 🚓 [Original Poster]
Joined: Feb 2009
Posts: 6,899
iOS & Android overtake Sony and Nintendo in portable market in 2011 (gaming revenue).



http://blog.flurry.com/bid/77424/Is-...S-and-Sony-PSP
Quote:
The chart displays the share of U.S. revenue generated for portable games from 2009 to 2011. Note that we project November and December for 2011, based on their ratio to the first 10 months of the year, as observed in 2009 and 2010. Starting on the left, for 2009, we calculate $2.7 billion in total U.S. portable game revenue. For 2010 and 2011, we estimate $2.5 billion and $3.3 billion, respectively.

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.

As reported by Flurry earlier this year, the freemium game model is revolutionizing and expanding revenue on mobile devices. And just as smartphone game revenue has climbed aggressively, Nintendo DS and Sony PSP revenue has dropped precipitously. Over the last three years, Nintendo and Sony posted a combined $2.2 billion, $1.6 billion and $1.4 billion for 2009, 2010 and 2011, respectively.

Within the portable category, an abundance of digitally distributed free and $0.99 games, available on hardware, that is both comparably priced and more powerful than traditional portable game devices, better appeals to many consumers. As a result, the days of paying $25, or more, for a cartridge at a retail store may soon end. Further, the installed base of iOS and Android devices has not only reached critical mass, but also continues to grow at unprecedented rates. In their latest public statements regarding installed base, Apple and Google reported a total of 250 million iOS devices and 190 million Android devices activated, respectively.

Due in part to its demise in the portable game category, Nintendo is facing its first fiscal year loss since the company began reporting profits in 1981. Combined with slumping Wii sales, Nintendo is indeed struggling, even with its powerful stable of original IP led by Mario Brothers, and despite the fact that the exchange rate between the Japanese Yen and U.S. dollar is currently in its favor.

Equally concerning for Nintendo is that the battle for video game dominance is entering the living room, with entries by both Apple and Google into the TV category. Ostensibly, this new class of hardware will create a new platform upon which the digital distribution model of apps will be overlaid. Now, in addition to tablet form-factor competition, the console game industry, which currently pits Microsoft, Sony and Nintendo against each other, will additionally face competition from Apple and Google TV initiatives. Beyond 2011, if Nintendo continues to face financial hardship, it may be forced to consider difficult choices such as divesting its hardware business and distributing its content, for the first time, across non-proprietary platforms.
Quote:
A Note about Methodology

For this analysis, Flurry used a combination of publicly available data, released across several reports by the NPD group, along with its own data collected from mobile devices. Flurry Analytics tracks more than 20 billion use sessions per month across more than 125,000 applications on more than 330 million unique devices per month. Nearly 40% of all app use sessions occur in games. With its coverage across applications, Flurry can reliably estimate the revenue generated per ranked position in the iTunes App Store and Android Market. With this data, Flurry calculated year-over-year revenue generated by the smartphone gaming category, and combined this with available Nintendo DS and Sony PSP software sales.

Currently learning iMaschine and Garage Band.
11-10-2011, 04:24 AM
#2
Joined: Jan 2011
Location: England
Posts: 10,656
Its great news how popular iOS gaming is. It would make sense for Nintendo and others to release their games on other formats to make a lot of money (Specially when Nintendo appear to be struggling).

But either way as iOS is so popular with games it should mean more and more coming our way

11-10-2011, 11:05 AM
#3
Not surprising considering the number of iOS devices and the ease of use of the app store

Playing: Ski Safari, Polara, Girls Like Robots, Dynamite Jack, Monster Flip, Polymer, Super Mole Escape, Dream of Pixels, Radballs
11-10-2011, 07:20 PM
#4
Joined: Oct 2010
Location: Belfast N Ireland
Posts: 2,169
Won't last for very long unless they update the touch, at the minute the only competition is the 3DS which got pretty much hammered in the media (at least in the UK).

Vita on the other hand has a massive amount of interest including myself, I've spent a ton on ipod games myself but I'm probably not buying many more of them unless I know it's going to get an update and I'm already budgeting my money for vita titles.

I don't mean to sound bitter, cold, or cruel, but I am, so that's how it comes out
11-10-2011, 11:03 PM
#5
Joined: Nov 2010
Posts: 116
Amazing charts. It's hard to imagine a company losing so much market share so quickly. I think the good thing is that with all the success of the iOS stuff, it makes it much more likely that Apple will focus more on innovating in the games sector. Maybe an Apple gaming console in the future? A device with gaming, internet, and media streaming all integrated together and running iOS makes sense, and it's a nice uncharted area for Apple to expand into. If they do it right they can take MS and Sony by surprise like they've done to Nintendo.
11-11-2011, 04:41 AM
#6
Joined: Jan 2011
Location: England
Posts: 10,656
To me its the quality of the games but also the price. I couldnt believe when i 'discovered' iOS how cheap the games were. At those prices people dont need to copy (I know some still do) but you can 'gamble' and buy lots of games even if you might get a dud.

It shows that if you release a game for the PSP at $25-30 you might not get huge sales, release a quality game for $2.99 or $3.99 on iOS and you'll get so many more sales. By keeping prices low people are flocking to iOS
11-15-2011, 06:33 AM
#7
Joined: Aug 2010
Location: Pakistan,Karachi.
Posts: 192
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Quote:
Originally Posted by KiwiGummy View Post
Maybe an Apple gaming console in the future? A device with gaming, internet, and media streaming
It will be too expensive though with all those things.
12-04-2011, 02:04 PM
#8
Joined: Oct 2011
Posts: 361
hmmmm. interesting
12-04-2011, 02:07 PM
#9
Joined: Nov 2009
Location: Germany
Posts: 6,457
LOL, now I understand what this Nintendo Big Boss meant when he said that "the iPhone is the enemy of the future".
12-04-2011, 03:22 PM
#10
Doctor of Game of the Week-ology
Joined: Oct 2010
Location: Everywhere and Nowhere
Posts: 7,681
Haha. Remember when the CEO of Nintendo claimed about a year ago that he didn't see iOS devices as a threat? My, how the tables have turned.

Of course he somewhat retrackted on that statement when he later claimed that iOS devices were the enemy of the future, but I will never forget his original statement.