It’s no secret that the Iphone app store has blown up bigger than anyone could have imagined and considering many of the top apps are games, just how big a threat is this to Nintendo?  BIG!  Nintendo has absolutely dominated the handheld gaming market ever since they released Gameboy back in 1989.  The only real competition since then has come from Sega with it’s Game Gear and more recently from the electronics giant Sony with its PSP.  Game Gear lasted for a few years but could not stop Nintendo and from the looks of it the PSP will follow suit.

Who would would have thought that Apple would become Nintendo’s greatest competition in the handheld market.  The Iphone has only been out since June 2007 and the Iphone 3G only since July 2008.  In that short period of time Apple has sold well over 10 million Iphones and considering the price tag that’s quite an accomplishment.  As with the Ipods, eventually the price will reach a limit that it will become purchasable to the mass market.  Currently with its monthly price plan and step $299 price tag it’s just too expensive for many people.  However in a year or 2 as prices come down and the install base grows, Nintendo will start to feel the pinch.

I for one am the perfect example of why Nintendo is in trouble.  Being a life long gamer, I stopped using handhelds back when I was in highschool.  The prices for games were too expensive and were B rated versions of the console games , however this isn’t as much true today as it was back then.  The big issue with the handheld gaming systems is that they’re targeted towards kids, teenages and young adults, which I no longer am.   I’m 29 yrs old and if I busted out a DS on the subway I would feel pretty embarrassed.  However I have no problem taking out my Iphone and playing Sudoku or Topple.  The Iphone is going to do to Nintendo exactly what Nintendo has done to Sony and Microsoft with the Wii.  It’s going to target casual gamers and crush the competition.

The Iphone is the perfect platform for casual gamers.  Most people who are getting the Iphone are not getting it to play games, but instead to have a phone with internet.  However since the app store opened it became obvious that users wanted to get more out of their phones and gaming has become a big part.  Not only can you get quality games at cheap prices or free, but you can download them to your phone usually within 2-3 mins and start playing instantly.   You can’t do that with any other handheld.

As the Iphone’s game catalog grows and as game developers start to see that it can be very profitable more and more high quality games will start to appear and as this happens even hardcore games will start to migrate over.  I mean if you can have phone, internet and a gaming handheld in one for about the same price as  DS, why wouldn’t you?

Nintendo is in trouble and I think they know it.  I wouldn’t be suprised if Nintendo steps into the rink with Apple in the phone market.