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First of all, I'm not sure how the fact that most iPhone games are $0,99 is "irrelevant".
Secondly, it's not the number one gaming device... because it's not a gaming device.

*insert graphs of the crapton of money games on the Appstore are making*

Guys, it's very simple: we're talking about a phone. EVERYBODY (literally) buys phones, it's a necessity now, not a luxury. Video games have a much more specific audience, so breaking the 100 million mark is impressive - while it's something the iPhone does every year.

So, you have a MASSIVE audience, games that cost less than a dollar, encouraging impulse buys... think of it this way, while the video game people were talking about GTAV, iPhone players were talking about Flappy Bird and Candy Crush Saga. And we're still talking about GTAV! Flappy Bird? What?

The day that a smartphone game with a $10 pricetag is not seen as "too expensive", maaaaybe I'll begin to think of them as "handhelds", like sooo many people suggest.