Can reach a large audience

Unlike independently produced PC games, which were the major domain of small developers before the iPhone hit the scene, iPhone games gain instant access to a large consumer base, and with minimal advertising necessary, thanks to numerous iPhone reviews sites which bring free exposure to most games. While the competition has grown increasingly fierce on the iPhone, with the number of apps available increasing by nearly 300% in just the last few months alone, the number of purchases is steadily climbing with it, at about 275% over that same span. While the iPhone will likely hit a wall in the future at some point as the number of games available simply overwhelms the market (though Apple claims to be implementing more stringent game approval policies in the near future), the ceiling has not been reached just yet, and may not for some time.

Price encourages impulse buys

With the high price of most games, gamers tend to be cautious with what they purchase, and rightfully so. Especially with the global economy in its current slowdown, plunking down $50 for a game without extensively looking into it first just isn’t smart. The iPhone, with games typically falling in the $0.99 to $5 range, hasn’t had this problem, as gamers have been more than willing to spend cash on games they knew nothing about beforehand, and even games they figured they wouldn’t like. You won’t be seeing people buying a $50 PlayStation 3 game that they assume they won’t like anytime soon.

iPhone games tend to get the benefit of the doubt from reviewers

Check out any site carrying iPhone reviews and you’ll probably see slightly inflated scores that give games more credit than they perhaps deserve because a) many of them are developed by smaller companies, and b) they’re cheap. Scroll through any iPhone reviews site and you’ll see a lot of 80% and better scores. Are iPhone games just that good? Probably not. But the combination of low price and portability make them more attractive than they might otherwise be, and through those glowing reviews (as well as the generally high review scores most games have at the app store), more attractive to consumers.

Limited Piracy

While iPhone piracy does exist, playing pirated versions of iPhone games requires a jailbroken iPhone which most casual users neither have nor want. Coupled with the low cost of iPhone games, piracy has remained fairly low, a fate that most other gaming systems have not been as fortunate to obtain. Even independently developed computer games that sell for reasonable amounts are often cracked and sent out over file sharing sites shortly after their release, making the iPhone a relative safe haven for small developers looking to carve out a tiny niche in the gaming world, and a bit of profit to go with it.

Perhaps a temporary boon for developers looking to add a little bling to their bottom line, some critics predict micro-transactions will signal the demise of the app store as we know it.

One of the greatest controversies brewing around the announced features of the forthcoming iPhone 3.0 is the ability app developers will have to sell additional content for their apps, and the result this may have on the market.

For anyone unfamiliar with micro-transactions, they’re very common in MMORPG’s, particularly Asian MMO’s, which allow players to play for free rather than charge a monthly fee, instead generating revenue through item stores, which sell things like powerful equipment or XP boosting items for real money. With the difficulty in attracting new subscribers given the over-saturation of the MMO market, allowing players to play for free, yet enticing them to spend money is other ways has allowed many smaller games to stay in existence.

The trouble with applying this model to the iPhone is that there’s very little benefit to the user. Rather than getting a game for free and having the option of buying extra items if they so choose as in a Micro-MMO, iPhone games will still cost money to buy, yet instead of the numerous free updates to games which are common, developers will now have the ability to charge for updates, even updates that could be considered necessary (bug fixes, etc.).

Even non-essential updates like content updates will likely come with a small price tag now, whereas before gamers would’ve received these updates for free. This has raised substantial fears that developers will purposefully leave games in an unfinished state in the future or hold large chunks of content back so they can release it in future paid updates. Instead of the usual $5 price tag for a game now, gamers may be paying $10-$15 or more over the course of a game’s lifespan to keep it updated.

Micro-transactions themselves are often criticized by gamers, as preying on completionists or collectors, who are all but compelled to buy each item as it is released. These items often add very little to the gameplay other than offering aesthetic choices.

Despite Apple’s assurances that games will be more thoroughly tested before being approved for sale, the fears of many an iPhone gamer is that the iPhone’s glory days will soon come to an end, to be replaced by heartless profiteering developers, unfinished and buggy games, and useless items to suck away their money.