iPhone: the Great White Hype?

The iPhone has been heralded as the second coming of mobile games. But just how important a piece of the more than $5 billion dollar mobile game industry is it?

Is the buzz surrounding Apple's iPhone and iPod Touch deserved or just the byproduct of a vocal, technophile few?

While major mobile game developers like Apple-centric ngmoco and international powerhouse Gameloft all say the Apple devices are just a small share of the mobile market, they also all agree that the impact it is having on mobile games is unprecedented.

"Apple's introduction has been a watershed moment for the industry as operators and handset manufacturers are increasingly focusing on their offering around apps and storefronts," said Jill Braff, the senior vice president of Global Publishing for Glu Mobile. "We're excited about the iPhone and iPod Touch market — it's certainly a unique and compelling platform in the mobile business. "

Trip Hawkins, Digital Chocolate CEO and founder of Electronic Arts, says that he's never seen a new device become important as fast as Apple's iPhone and its App Store, which allows people to buy software and games on their iPhone or Touch through the device.

"Apple devices have only scratched the surface of demand so far," he said. "Apple will provide sustained long-term growth, but they have also galvanized competitors who will help further expand this 'nextgen' consumer smartphone marketplace. Today Apple is talking about tens of millions of devices but they are the archetype for a market for several billion devices. It is already a big deal to us but the best is yet to come."

With 40 million iPhone and Touch owners, it seems hard to believe that the Apple smartphone generates as much interest as it does from developers who create games for a potential market of billions.

Why care what one percent of what the total market things? Mobile developers say that's in part because iPhone owners tend to buy a lot more games on their device than typical mobile phone owners.

Many, including Neil Young, founder of developer ngmoco, also sees the platform as the future for mobile gaming.

Mobile game sales had stagnated, he said, until the iPhone came along. Now most of the industry's growth, he believes, will come from the iPhone.