Yesterday during Apple's annual Special Music Event Steve Jobs announced that the iPod touch was more popular than both Nintendo's DS and Sony's PSP... combined. Jobs also said more than 1.5 billion games and entertainment apps have been downloaded by iPod touch devices to date.

However, as every gadget and gaming blog has since pointed out, while iPod touch has sold in the mid tens of millions of units (Apple doesn't often break them out), Nintendo's DS series has sold 132 million all on its lonesome, so take this with a "biggest mobile company" type grain of salt.

[Engadget, thanks also to Freaknasty]

Apple's CEO, Steve Jobs, is quoted in the WSJ as being bullish on iPhone and iPod Touch gaming:

"I think the iPhone and iPod touch may emerge as really viable devices in the mobile games market this holiday season."

His VP of iPhone and iPod marketing, Greg "Joz" Joswiak, meanwhile, spoke with T3 recently about his views on the iPhone and iPod Touch in the gaming space, wrapping up strongly with:

"if you squint your eyes you can see a future where you say it’s amazing the things you’ll see as far as gameplay, and we know from working with these developers and the things they tell us they’re working on, especially original content ideas, I think they’re going to blow everyone away. Because again the computer power and the 3D graphic power here [iPod Touch] is significantly greater than what you have here [picks up Nintendo DS]. So this allows people to do significantly higher quality games. And the Touch is always in your pocket, whereas you can’t always carry some other games consoles."

So while cut and paste and turn-by-turn may still be complicated, Apple may actually be putting some muscle behind gaming this time -- something they've never historically done well on the Mac.

Still at issue, however, is whether low price points and an unwillingness among some consumers to pay for premium apps will drive the bigger developers away (thanks Julien for the tip!). Dieter and I would happily pay $20 for Jobs of War or Grand Theft Auto: Cupertino Vice, but with people complaining about $1.99 puzzlers, we may never see the Mario or Halo of the iPhone. (You get what you pay for is a cliche for a reason?)

What do you think? Does iPhone gaming have a bright future? Would you pay for premium play? And are you ready to ditch your Nintendo DS or Sony PSP yet?

For the last two weeks we here at TiPb have been taking a deeper look into Apple's "Game On" push. Can anyone really doubt Steve Jobs is trying to make the iPhone/iPod Touch into the next big portable gaming device? Stop and think about it, he took the idea of a portable MP3 player and made it into a device that has dominated the music business ever since. Now, according to Jobsy, "you could make a pretty good argument [the iPhone is] the best portable device for playing games on."

Michael Gartenberg, vice president of Mobile Strategy at Jupitermedia's MobileDevicesToday.com, chimed in:

The not-so-subtle message was, ‘If you’re thinking about buying something like a PSP or a DS, maybe you want to think again because we’ve got this cool device that does all your mobile stuff and, by the way, is a pretty excellent game platform as well’

Steve Palley, Editorial Guru for Vivendi Games Mobile said:

The iPhone is going to make the mobile games industry into everything we always wanted it to be but failed to achieve.

Even Nintendo's Denise Kaigler, VP of Corporate Affairs spoke out regarding the iPhone:

Any time you have a new company enter an industry, it’s always good for the consumer. It gives them choices and we welcome that. But we have found over the last 20 years, despite all the choices consumers have had, that the Nintendo devices have enjoyed a great deal of success.

I really can not argue with Nintendo's comment. Nintendo is the king of the hill in the handheld gaming industry. Many have tried to overtake them, all failing. Here's what I'm thinking, though, Apple may not be the top dog at the moment but by the time the next iPhone is released, Jobsy might just be saying "I told you so!". Give the App Store a year to grow, software developers time to get the most out of the hardware, etc... And then lets see how things start to shake out. What are you guys and gals thinking?

[Via MSBC.com]

As gaming developers grow more familiar with the iPhone platform and learning its capabilities, many are doling out their opinions across the interweb. Compared to the DS and the PSP, an EA developer put the iPhone in terms of power closer to the PSP than the DS. That's nothing new for us at TiPb but now Sega is claiming that the iPhone is more powerful than their last console, the Dreamcast! To remind you: the Dreamcast was home to Soul Caliber, Shenmue, & Virtua Tennis and the console was a competitor of the PS2 and Xbox.

And. the. iPhone. is. more. powerful. than. that.

But powerful as it is, as proven by the current console war, the iPhone is going to need FUN games to succeed as a gaming platform. Let's give developers some time to see what they can come up with. With such power under the hood, they'll have no excuse!

Read

Not only did the iPhone serve RIM at the SDK event. But after Apple showcased the demos of Touch Fighter, Spore, and Super Monkey Ball on the iPhone, Nintendo and Sony better watch out as well. Game controls utilized the accelerometer and multi-touch while the graphics were displayed on that crystal clear screen--make no mistake--Apple is ready to revolutionize gaming.

With the early glimpses into the gaming capabilities of the iPhone, we've learned that:

1. The possibilities are endless
2. It looks really fun
3. Apple has a potential gaming jackpot in their hands

If we have learned anything from the current console "war" between the Xbox 360, Playstation 3, and the Nintendo Wii—consumers are more interested in buying the "fun" games as opposed to those that are graphically superior. At its bare minimum, gaming on the iPhone can be likened to a ridiculously advanced wii-mote. At its maximum potential? Quite possibly the best mobile gaming experience ever.

Earlier today Chad asked about what your favorite gaming experiences on the iPhone might be. But how will Apple deal with the business side of it? How can the iPhone conquer gaming? Find out after the jump.

Present State of Entertainment

As home entertainment becomes busier with multiple types of on-demand entertainment, there is little to no room on people’s TV stands. In a sense, to get a foot into the living room—there would have to be too much investment for such uncertain gain. Hence, the Apple TV has manifested into a ‘hobby’ unit because of the overcrowded entertainment stand. If we can compare this generation's gaming battle to a war, the living room would be its trenches where little to no room is actually gained.

However, portable gaming as a whole is on an upward rise. Sales of the Nintendo DS and the Sony PSP almost always outpace those of their home console counterparts. With total sales of the DS approaching 70 million units worldwide and the PSP with around 25 million units. The global appetite for portable gaming is only beginning to be realized.

Still the portable market has yet to be conquered. People are carrying too many items around—phones, cameras, planners, gaming devices—only because there has yet to be a true all-in-one device. Before the SDK announcement, the iPhone could only realistically cover your phone, planner, and camera (to an extent). But now? If this is entertainment war, the iPhone should be likened to the A(pple)-Bomb.

Portable Gaming Today

Today's market of portable gaming consists of two titans. The behemoth of fun, the Nintendo DS and the sleek, cool Sony PSP. Comparatively speaking, they come from two different backgrounds. The PSP has a beautiful screen that the DS lacks but makes up for in a touchscreen. The PSP CPU is light-years faster than the DS, but the DS answers back with better games and an easier to learn experience. With these two portable gaming consoles dominating the market, it begs the question--is there room for one more?

Lets take a quick look at the processors and screen quality of all three devices and see where the iPhone stands in the pack.

Nintendo DS

Processor: two ARM CPUs @ 67MHz and 33MHz

Screen Resolution: (2) 256 x 192 pixels

Sony PSP

Processor: MIPS CPU @ 222 or 333MHz

Screen Resolution: 480 x 272 pixels

iPhone

Processor: ARM CPU @ 620MHz

Screen Resolution: 480 x 320 pixels

Using that as a rough barometer of gaming possibilities, we can see that the iPhone is perfectly capable of handling any game that the PSP runs sans ugly UMD and awkward analog stick. In fact, combining the more powerful CPU processor with OpenGL and Core Animation for developers, we truly have the capabilities for great looking games. But again, being more powerful than the next machine doesn’t guarantee victory. What does help however, is having a fun and unique experience.

So taking on the current king, the Nintendo DS, is crucial if Apple wants to walk away victorious. As Nintendo continues to raise the bar in fun gaming experiences, Apple is hot on their heels. Any game that involves touching, the iPhone can match and raise with its accelerometer. In fact, as Nintendo often suggests, touching is good, but as any iPhone users would say multi-touch is much better.

iPhone users really have the best of both worlds in their hands. Not only do they have a machine more powerful than the PSP but they also combine it with a gaming experience on par with the Nintendo DS. The iPhone (and to the same extent, the iPod Touch) certainly has the technological prowess to take the portable gaming market by storm. Include the fact that with Apple’s goal to sell 10 million iPhones by the end of the year and the onset of a 3G iPhone along with more potential carriers across the world, Apple certainly will have enough iPhones in people’s hands to make a dent in the gaming industry.

Where Can The iPhone Fit In?

Looking past the enormous fun-factor in all the games demoed at the SDK roadmap event (and boy, were they fun), we should note something much more important: how quickly the games were developed and how eager the developers are. If developing games for the iPhone was tough, even the most powerful system would squander its potential without the best developers on board. Luckily, the people over at EA and SEGA continually stressed the ease of developing games for the iPhone throughout the entire event. In fact, Sega likened creating games for the iPhone to creating games for any console. The iPhone has THAT much potential.

Using iTunes to promote the games will serve as the perfect billboard for developers. Mobile gaming (and products, for that matter) has never seen an outlet such as iTunes. Gone are the days of searching for fun games on your mobile carrier’s store and scouring versiontracker for the latest build, iTunes is a media outlet that has become near universal. Having your product on the pages of iTunes is on par with being on the shelves at Wal-Mart and Best Buy.

The iPhone’s true soul is being a blank slate—that principle reflects in its design. By building a powerful device from the ground up (that just so happens to be a phone, among other things)—the iPhone has made developers re-think mobile gaming. No longer are they confined to uncomfortably small buttons or screens with horrible resolution—they truly have their blank slate to go wild on.

What Will Apple Do?

But the question remains, does Apple really want to pursue Nintendo and Sony in portable gaming or are they satisfied with being just better than mobile phone gaming? I think the answer lies somewhere closer to challenging the DS and the PSP. They have the technology behind their device, developers already on board, and a cool and fun factor that neither Sony nor Nintendo could match. But if games provide to be too tough to develop (I doubt it) or end up being terrible (Again, I doubt it), Apple can easily back off and claim it never planned for the iPhone to be the next big thing in gaming.

Either way, it is an entirely win-win situation for Apple—portable gaming just adds to the near-perfect resume of the iPhone. Remember folks, the iPhone is already a great phone, the best mobile internet portal, and the best iPod—in one device. Asking it to be the best gaming device, might be a little too much, but that’s how high Apple has set the bar. And I think they just might reach it.

With the recent announcement of the iPhone SDK, we became witness to the iPhone's possible future in gaming. If you are a portable gamer, you probably already own a Nintendo DS or a Sony PSP. Perhaps in the future, you will just use your iPhone? The iPhone is flying off of the shelf these days and with the App Store around the corner, there is no excuse for users not to get a little gaming action. Electronic Arts is a huge developer and publisher for video games. What if they port games to the iPhone? A little Need for Speed Underground anyone? Imagine holding your iPhone like a steering while and using the accelerometer as you rotate the phone left and right to steer, then lean the iPhone forward to accelerate and tilt it back to brake and change your views by touching the screen... oh, the possibilities.

What do you foresee as possible future uses for the iPhone as a gaming platform? We could start with Nintendo's Wii for inspiration...