GameStop: iPhone Gaming Actually Boosts Traditional Console Business

With more than 100,000 apps now on Apple's App Store, roughly 20,000 of which are games, the iPhone and iPod touch have become significant gaming platforms. The argument could certainly be made that sales for these platforms and their games are eating into sales of traditional portables like the DS or PSP or even consoles. 

"The DSi carries a relatively high $169 price point, and the DSi XL is likely to be priced even higher, making the purchase of a $199 iPod Touch more tempting for gift givers. While we think that the DS is a superior gaming platform, the iPod is a more versatile device, and has a 'coolness' factor that is difficult to overcome," Wedbush Morgan analyst Michael Pachter commented recently.

If the Apple games business is affecting the portable market, however, you'd think GameStop – as one of the leading retailers for DS/PSP – would be concerned. IndustryGamers asked Tony Bartel, Executive VP of Merchandising and Marketing for GameStop, about this very issue, and if anything he thinks the iPhone gaming market is a boon to the traditional games space, possibly attracting new users to games in general. 

“I really see a lot of growth in both of those areas,” he said, referring to iPhone versus traditional portables. “They appeal to two different audiences, but in some cases I think it could be accretive to the video game industry. I've been looking at Madden and Assassin's Creed on my iPhone, and while they're fun to play, they're far from the experience I can get on a console or even on a handheld. So I think in some cases they could lead people over into that area. And you're talking about a small development cost, games that are monetized in most cases at a dollar. So if they bring people into the world of gaming, I think that's a wonderful thing.” 

He added, “I think the challenge is to continue to let those people see what the experience is, especially from a console standpoint, which is such a superior experience with high definition and surround sound. So I really see the [iPhone market] as more complementary than competitive at this point.”