GlingGling said:
Why would anyone pay over $1800 just to access the hardware? (source: http://gizmodo.com/5015540/iphone-3gs-true-price-compared)
And without a contract $599 for the 8GB version or $699 for the 16GB model. (source: http://news.cnet.com/8301-17938_105-9981676-1.html)
In this generation of iphone can't be a viable gaming platform. If people are shying away from spending $400 on a console that can bust a graphical groove, why would they spend $200/$300 more for Dreamcast on the go?
And don't gimme "it's a phone/multimedia machine too" because the demographics are different.
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You just answered your own question. The comparable cell phones out there are in the same price range as iPhone, but won't make a similar gaming platform. Obviously people aren't going to buy the iPhone solely for gaming, or even mainly for gaming: it is a phone after all, along with a host of other things. But, way more people have phones than game consoles, and a lot of the gaming demographic is going to overlap with the iPhone demographic, so for them it may make sense to pay that much for a Dreamcast, iPod, Phone, GPS etc. on the go. I am one of them.
Then again, I don't know what you mean by a viable gaming platform. We'll have to see how it turns out, but I believe that after a year or two, iPhone will be the number 3 mobile gaming platform, right after DS and PSP. Other cell phones just can't compete with it.