BusinessWeek warns Sony and Nintendo about Apple

It's difficult to disagree with a new report published by BusinessWeek regarding the iPhone's rapid domination of the handheld games market. We're all a little guilty of pitting the iPhone against the mobile formats rather than the handheld consoles, but as this reports rightly points out, Apple's platform is actually primed to take business away from the DS and PSP.

On face value the Apple system comes across as an expensive mobile phone, but as a gaming console the iPhone looks increasingly appealing when the considerably lower cost of the games is factored into the overall price. DS and PSP games often hit £30+, while an expensive iPhone game is only around the £5 mark. Even with a monthly contract fee thrown on top, the dedicated games systems struggle to compete with the iPhone's price of gaming. The report looks beyond the initial outlay costs and concludes that an Apple gaming habit is far more affordable than one centred around Sony or Nintendo's consoles.

The convenience of distribution coupled with the sheer volume of available titles (with the iPhone already racking up more games than both the DS and PSP put together) and the number of hardware units sold also pushes the iPhone into a strong, comparative lead.

BusinessWeek suggests more will become clear after the commercial season, but public response to the report has been very much in agreement. Have a look at the full report and let us know your thoughts on whether Nintendo and Sony are indeed well advised to watch their backs…