A really interesting article from BusinessWeek: is the iPhone a DS/PSP killer? Or, at least, a strong competitor? The article springs from a lengthy and rather tech-heavy post by blogger Daniel Dilger. In it, he gives a brief history of the console and handheld gaming wars and talks about where, exactly, the iPhone might fit.
While the iPhone’s hardware is leaps and bounds ahead of the PSP and especially the DS, it’s separated from the other two by a pretty wide price margin. What’s most interesting, however, it’s Apple unique platform for delivering games. Companies like Sony and Nintendo require steep licensing fees to have games appear on their platforms, and on top of that take a very hefty chunk of the sales. Apple, on the other hand, requires no licensing fees and gives developers a full 70% of the royalties — nearly unique in the gaming industry as a whole. That strategy could, and to a large part already has, lead to a very large number of developers flocking to the platform.