Rise of the Apps?

NPD, a research firm that tracks video game sales, reported that March hardware sales rose, but software sales plunged again. The industry cannot entirely articulate the reasons for the drop, which makes countering it all the more difficult.

Total video game sales in the U.S. fell 4% for the month to $1.53 billion. Sales of software -- i.e., the games themselves -- fell 16% to $735 million. Hardware sales moved higher by 12% to $495 million, thanks to impressive sales of Microsoft's (MSFT) Kinect and the new Nintendo 3DS, but the boost they give to the numbers probably masks a downward trend.

NPD points out that a large fraction of software sales in the video game industry have shifted into apps for smartphones and tablet computers, and those app sales are not included in the firm's numbers. The group claims that 23% of software sales in 2010 came from app sales for platforms like the iPhone.

But is it that simple? Perhaps not for major video game companies like Electronic Arts (ERTS). Many apps, like Angry Birds, sell extraordinarily well on Apple's (AAPL) iPhones. But are Angry Birds sales undermining sales of EA's sports games or Portal 2 for traditional consoles. That depends on how much people are willing to spend overall on video game software. If the figure is fairly low among a large number of gamers, the few dollars they spend per app game will cut into the sales of games played on consoles. If that's true, eventually, sales of hot consoles like Kinect will be badly hurt as the number of apps available for portable devices grows further. But, as the economy improves, so might discretionary spending on overall game software. In that case, the proliferation of games and platforms may simply pull more money from consumers' pockets.

For now, video game companies like Microsoft and EA aren't saying how much the rise of app games may be hurting them. Indeed, the industry is in such a state of flux that they may not know.

See full article from DailyFinance: http://srph.it/ec74Vv

What do you guys think? Are Apps taking the spotlight?

Angry bird is fun as hell. In fact, I think that I'm going to play it right now!

Well games like Angry is really fun but ipods, pads etc won't take down the console gaints that easily since the console market is a lot bigger now compared to last gen.

i cant really get into any app games. i got a ipod touch and only use it for internet and music.

I haven't tried an app game that was on the same level as The World Ends With You or Hotel Dusk.

Until I see something that changes my mind, they'll always be side-dishes compared to what my DS can play.

ashketchumistheverybest wrote:

i cant really get into any app games. i got a ipod touch and only use it for internet and music.

I got into them for a short while. Ravensword was awesome (Oblivion style game) but now I've deleted the majority of them to free up space of music, but I still need a lot more space. I'm tempted to sell my itouch to get an ipod classic with over 100gb.

The only apps I use now from time to time are:

Comics - can download over 100 free comics and buy others

TapTunes - awesome music interface/ shuffling system

Graal Online Classic - zelda style rpg

Palm Heroes - Heros of might n magic style game

Ishred - portable guitar

Ephoto chest - for...certain...photos...

Facebook - duh


thats about it :S

Lykos wrote:

ashketchumistheverybest wrote:

i cant really get into any app games. i got a ipod touch and only use it for internet and music.

Facebook - duh

To talk to your pretend friends :alone:?

Sonji wrote:

Lykos wrote:

ashketchumistheverybest wrote:

i cant really get into any app games. i got a ipod touch and only use it for internet and music.

Facebook - duh

To talk to your pretend friends :alone:?

yes except even my pretend friends don't want to be friends with me anymore :alone:

angry birds is great but infinity blade is awesome,judging by the comments,looks like people haven't played it