Nintendo says they fear no competition, but they'd be fools to not be a little bit apprehensive about the iPod touch and the iPhone. Flurry reports that portable gaming software (as a percentage of video game revenue) has grown four percent in just the last year. Nearly all of that growth has come from iPhone OS devices, which are also up 4% year-over-year.
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In one year, Apple has grabbed nearly 1/5th of the portable gaming market. It isn't easy to just roll into a mature industry and turn it upside-down in a year, but Apple has managed it. If Sony and Nintendo want to stay the kings of portable gaming, they're going to have to conjure up some real competition for Cupertino. The question is, do they have it in them?