Large game companies love the App Store

While many of the early successful iPhone and iPod touch games came from small-time developers, big-name content creators like Electronic Arts, id Software and Konami are flocking to the platform, using their brands and marketing muscle to compete.

Electronic Arts

The App Store has about 13,000 games in 19 separate categories, ranging from old-fashioned board games to complex first-person shooters. Many games are the work of independent developers like Tapulous, creator of the “Tap Tap Revenge” series.

But brands like EA have an advantage with popular licenses like Tetris and The Sims 3, which casual audiences are familiar with. The latest version of The Sims released simultaneously on the iPhone and PC in June. It is priced at $9.99.

Larger companies like Gameloft are now looking to take a bigger piece of the action. Those companies typically spend more money to develop a game, well beyond what most independent developers are able to invest.

“Although the top iPhone games are made by independents today, the big publishers will strike back,” Jeremy Liew, a managing director at venture capital firm Lightspeed Venture Partners, told Reuters. “The iPhone only offers one way for games to get discovered today, and that favors the cash-rich big publishers.”

Still, inexpensive games seem to sell the best. While new titles like Metal Gear Solid Touch might jump to the top of the charts upon release, the $7.99 price tag seems to deter some buyers over time. Meanwhile, $0.99 offerings like Bolt Creative’s Pocket God – which offers regular updates with new content – continue to appear consistently in the top 10 paid applications.

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One Comment to “Large game companies love the App Store”

  1. on 17 Jul 2009 at 6:24 amusingiphone

    Definitely, Apple has changed the rules of the game bussiness with iPhone and the App Store, but I think they went halfway. It is true that you do not need a publisher for your game anymore (don’t you need one? sure?), and you do not need a distributor thanks to the on-line downloads, but at the end the App Store is like any other real game store, they have the 25 featured applications, and the user never know about the rest. Social networks like Facebook are doing much better with games than the App Store.

    Read more at: http://www.usingiphone.com/profiles/blogs/the-nightmare-of-marketing-on

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