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Is the iPhone leading the way for living room consoles?

Apple's handheld has made digital downloads the way forward

Is the iPhone leading the way for living room consoles?
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Reuters has been taking a look at the progress of a new digital download service for PC games, OnLive, and how it will relate to similar services such as Xbox Live, PlayStation Network, and Valve's Steam network.

Despite the computer and video game industry's headlong rush toward digital distribution, data suggests that only 18 per cent of Xbox 360 users (with a Gold account) download content regularly, while only 10 per cent of the PlayStation install base are downloading.

A report earlier today suggested that 75 per cent of iPhone users are regularly downloading content to Apple's platform, and while this might initially seem like something of an indirect comparison, that's not necessarily the case.

Nintendo, Microsoft and Sony are all looking to get their digital distribution systems operating on portable devices, in answer to the ever increasing iPhone and iPod touch threat.

A comparison of install bases was made by Gizmodo earlier today, showing the 40 million iPhone and iPod touch users are rapidly catching up with the PSP and DS.

If we look at the broad digital software distribution market – rather than discounting figures based on handheld, console or mobile platforms – then Apple's system is forging ahead, even beating Valve's 21 million PC users.

As this new trend for digital distribution catches hold and actively encourages gamers away from the shops, it seems even the home consoles are well-advised to acknowledge the Apple handheld as serious competition, and have a long way to go before they see the kind of digital uptake the iPhone currently enjoys.

All Apple needs now is a living room console of its own.

Spanner Spencer
Spanner Spencer
Yes. Spanner's his real name, and he's already heard that joke you just thought of. Although Spanner's not very good, he's quite fast, and that seems to be enough to keep him in a regular supply of free games and away from the depressing world of real work.