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wfz said:
I doubt many full priced games will sell well on it. I was looking up all different games and apps the other day, and oh my god there are so many stupid, pointless, cheap games. :P I got a few cool free ones, but I sure as hell wouldn't pay for a game on it unless I heard from others that it was good.

I bet the iPhone and iPod Touch are going to get pretty nice software sales, but keep in mind that almost every game is less than 5 bucks. Most of them I saw were 99 cents, $1.99, or free.

I agree. Actually, although it's only been around for a few months, the price points seem to have settled: a full priced game in the App Store is $9.99, and anyone wanting to sell their game for higher will have a lot of explaining to do to convince customers that their game is worth it.

One thing to note, however, is that most iPhone games don't get any marketing at all. The devs seems to think it's enough marketing that the game is in the App Store... but I expect this to change with time. With the number of titles rising fast, devs can't just hope for their game to stand out from the mass of crappy games without any marketing. Word of mouth and viral marketing only work for a very small minority.