I wonder what the average price of a game sold on iPhone/iPod Touch is, though?
If it were around $2, and 550M of the 800M apps are games, then all games sold for the platform would compare to the revenue of a single game like Wii Fit or Guitar Hero III. Or maybe the top 3-5 games on DS.
That's not a problem for anyone involved. There's still the opportunity for a small dev to have a hugely profitable business (per employee) on iPhone. And from Apple's perspective, the platform, not the content, is the meat of their business.
In the same way that digital distribution and Flash gaming on PC has not harmed console gaming, I don't think iPhone is a threat to DS. However, PC:home console::iPhone:handheld console is not a perfect analogy by a long shot, which is why this is interesting to watch and discuss...
"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."
Satoru Iwata, Nintendo President. Only slightly paraphrased.
