Developer n-Space blames cheap iPhone games for industry troubles

Inexpensive iPhone and iPod touch games are one of the leading causes of turbulence in the game industry claims the founder of Nintendo DS developer n-Space.

In a blog post confirming the regrettable news of layoffs at the Orlando, Florida-based company, founder Dan O'Leary lashed out at iPhone gaming.

O'Leary claims the game industry is "a mess," going so far as to say that Nintendo DS market has "collapsed."

n-Space has bet big on DS this year with Call of Duty: Black Ops, 007: GoldenEye, 007: Bloodstone and TRON: Evolution all expected in the next few weeks.

Specifically, O'Leary highlighted iPhone and iPod touch gaming as undercutting independent handheld and console developers.

"Huge budget titles have to sell massive numbers to return a profit and the App Store has disrupted our industry in the same way iTunes changed consumer expectations for music."

O'Leary identifies current economic troubles as another factor, but clearly emphasises iPhone games as a prime source of disruption.

"People that use to buy many games every year now buy a few AAA titles, supplementing their need with games that are free or cost less than a pack of gum."

While it is true that iPhone and iPod touch have undercut traditional handhelds in an effort to compete and reach a broader audience not catered by Nintendo and Sony, it's a stretch to generally assign blame to iPhone for low console game sales.

Interestingly, O'Leary revealed development of an iPhone and iPod touch game at n-Space that will be announced next week.