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Pachter: iPhone Gaming Not Commercially Sound

By Kris Graft

 Wedbush Morgan analyst Michael Pachter is impressed with the iPhone's capabilities as a gaming device, but questions its commercial viability as a gaming platform. Big name publishers including Electronic Arts and Sega have promised to bring some impressive-looking titles to the iPhone in the form of Spore and Super Monkey Ball, respectively. They're not alone, either, as Namco Bandai, Gameloft, THQ and others have committed to the device.

But while developers have been singing the praises of the iPhone as a blank canvas for game design, but Pachter doesn't see the device as a commercially viable platform for developers.

He said that the "impressive" device has “virtually unlimited potential," but added, "I don't see it as a viable gaming platform, due to the cost of owning one. The iPhone costs $400 plus an AT&T wireless subscription for voice and data, I’m guessing this is $80 a month, so the addressable market doesn't really fit the core gamer demographic.

“To the extent that hip, rich people are an interesting gaming audience, iPhone games will work. My guess is that this group is only interested in the most rudimentary games, and that the market will be small.”

Nevertheless, game developers are even more ecstatic about the device, following the unveiling of the iPhone SDK earlier this month.

"This is a phone that offers plenty of power to work with, no compatibility concerns, and uniform input functionality. That represents an evolution in the mobile gaming space," said Sega's Super Monkey Ball producer Ethan Einhorn in an interview.

Further comments from iPhone developers, along with a wishlist of 10 titles we'd like to see on iPhone can be found right here.