Agreed, but I think the term is valid when refering to the combination of the two devices. Otherwise what do we call the platform? Mobile OS X? iPhone + iPod Touch? Apple handheld? Thats why I think the term works quite well when used right. But of course if one is refering only to the iPod Touch they are dumb to call it an iTouch

That's true, and I don't really want to compare them. But given the huge success of the AppStore, it's interesting to see how the sales of the devices develop. Also, the availability has increased, so I definitely think it's possible to reach DS-like figures, or at least would have been without the economical crisis.

It's true that the attach rate is low, but cheap development and distribution still allow for enormous profit potential.

And then you can consider the growth potential of 30 million customers. People may not be paying much for software right now, but the hardware barrier is already out of the way. You just need to make something that people feel they have to have on their iPhone.

I said this in another thread. I don't think the iPhone/iPod Touch will ever directly compete with dedicated handheld gaming devices, but I do think that it will compete with them in some oblique way, like how PCs compete with consoles.

One thing that people need to remember is that the SDK has been in open distribution for what, 9 months now? It's not enough time to really make an "epic" game, no matter how easy the development is. But your points are all valid. Cheap things dominate the top lists, meaning smaller budgets. The thing that can change the direction, though, is buying more content in-game. It also enables somewhat real demos of games with suitable content, in other words games that have levels or other really meaningful content you can add later on. Currently, most people seem to complain about the lack of proper demos as a reason for not spending more than a dollar or two on a game. If you can get the game with first level only for a dollar, and then pay more to get more levels, it alleviates the problem greatly.

The AppStore has been a runaway success for Apple, and they themselves have been overwhelmed by it. I have to say that they didn't plan it perfectly from the beginning, but I have hopes they will fix things to a degree. On the other hand, a number of 3rd party App review sites have sprung up and I believe with time certain sites will gain influence. Currently, and unfortunately, the AppStore front page(s) and top lists are way too influential. You can get significant boosts from having your app mentioned favorably in certain blogs or podcasts, but those last only for awhile, and once you're out of the top 25 or 50, you're falling fast.

Despite the problems I still like to remind everybody that the damn thing has been around less than a year. So this is not directed at you averyblund but to everybody: Be honest, did you think it would gain this much success? Or did you write it off as a failure to begin with?

ugh its counting ipod touch.

but its not the fastest selling device.

nokia n95 sold over 20 million and 6300 in a year.

Actually, the attach rate is anything but low: 30 million devices and 800 million downloads equals 26.67 downloads per device, in 8 months. Even if you assume that 80% of that is free programs (which might be close to reality), it's still 5.3 paid apps. The attach rate is not low, the revenue per download is. But some apps are hits and sell huge numbers, and those success stories fuel the devs in both good and bad. The market is still taking the first infant steps, imagine where it will be when it grows up.

Yeah, because they're the same platform capable of running the same programs. Think of it like Arcade and Elite Xbox 360 SKUs or something.

And I haven't seen anybody claim that the iPhone, iPod Touch, or the combined platform they represent are the fastest selling device in any category.

Why shouldn't I count the iPod Touch? It's practically the same platform, especially from a gaming perspective. And I don't think anybody claimed it to be the fastest selling device, I certainly didn't.

I wouldn't be surprised if paid downloads are a lower proportion than that, but point taken.

I'm definitely excited for digital distribution to grow up in any medium. Just think of all the resources wasted on printing things and periphal costs of distributing and purchasing those printed things.Free up those resources and we can devote them to other, more productive activities, like making more content perhaps.

Also, re: the above post, jinx. You owe me a Coke.

I have a vague recollection of reading/hearing that about 80% of the downloads are free, but it could just as well be a figment of my imagination. I share your enthusiasm for digital distribution, and I'd like to add that from a financial perspective it also frees up huge amounts of cash that would otherwise be tied up in the physical products all along the value chain. The downside is that your local brick-and-mortar game shops will have a much harder time when physical game sales decline, something which Apple won't suffer from since their retailers are not depending on game sales.

Regarding the Coke, how would you like it delivered?