In addition to being blockbusters in their respective categories, Apple's iPhone and iPod Touch have put a hurting on Nintendo and Sony in the portable gaming market, according to Flurry. In 2008, Cupertino controlled some 5% of portable game revenue with $115 million in sales, and a year later, that figure ballooned to 19% with about $500 million worth of games sold. In that same duration, Flurry estimates that the PSP's revenue share fell from 20% to 11%, and the DS went from 75% to 70%.
Last year, Michael Pachter labeled Apple's iPod Touch "the most dangerous thing that ever happened" to game publishers. After all, with more than 30,000 games (and growing) in the App Store, the iPhone and iPod Touch make it easy to leave other single-purpose devices at home. Despite its limited popularity, the iPad is selling relatively well and will only help Apple's performance in the segment. How will Sony and Nintendo respond to Apple's products and sudden presence in the market?