Technologizer

Good news for game developers and people who hate “Lite” iPhone apps: Apple is now allowing purchases directly from within free apps. This feature was previously allowed only for paid apps.

Certainly the decision will affect anyone who develops a “Lite” app that has less features than the paid version, as it’ll let them combine both into a single download. But my mind jumps straight to gaming, which could see a rush of apps with paid microtransactions to unlock extra content or features.

Consider, for example, an MMORPG. Apple’s decision will allow developers to adopt a free-to-play model, charging players for extra items or abilities. Some games, such as Mafia Wars, were already doing this by having players purchase entirely new app for their upgrades, with their stats preserved. But the new solution is much more elegant, as it allows people to keep playing with minimal interruption, and without scrapping the app they already have.

That makes me wonder, what will the economy of iPhone microtransactions look like? If buying small bits of content is going to be a lot easier, I’d expect there to be a lot more of it, except for one snag: The iPhone economy is already dirt-cheap. The majority of iPhone apps are free, and the average price of a paid game, according to a recent study, is $2.50. People aren’t exactly throwing around fistfulls of money on the App Store, so even a handful of $1 microtransactions in a single game could be a tough sell.

I doubt that transactions for less than $1 would be allowed, but I think the cleverest free-to-play game developers will find a way to break it down. Perhaps they could sell credits, $1 at a time, that let you download a handful of in-game items. However they work it out, microtransactions will have to get extremely micro to thrive in the App Store.

As the iPhone and iPod Touch look more like portable gaming platforms, I haven’t tired of watching Sony and Nintendo flail. They’re like two incumbent political parties having identity crises in the face of a new competitor who’s hogging the spotlight.

The latest round of this partisan bickering comes from Nintendo of America President Reggie Fils-Aime, who in an interview with the Washington Post argued that the Nintendo DS does things the iPod Touch does not. As proof, he pointed to the DS’s two screens, Nintendo’s franchise titles such as Mario Kart DS and New Super Mario Bros and innovative games like the recent Scribblenauts, which lets players type out virtually any PG-13 noun and have the object literally appear on the screen.

“All of these experiences are very unique and very different and what you cannot find on their App Store,” Fils-Aime said.

It’s a weak argument. Half the games Fils-Aime mentions use the DS’s second screen to provide superfluous information, and there’s nothing in Apple’s technology that precludes a title like Scribblenauts. But the major problem here is Fils-Aime’s “our console is different” mentality.

Guess what? Every console is unique in some way. Check out Dan Terdiman’s CNet article today on a new breed of iPhone games that integrate your phone and contacts. That’s unique. Or just visit the App Store and pick up a free chess app, a free tower defense game and the entirety of Wolfenstein 3D for $2. That user experience is unique.

The real question is whether one console’s unique experience is better than the competition’s. I’ll concede that Nintendo has powerful franchises in Mario and Zelda, et al, but that doesn’t make up for how Apple is capturing the casual gaming market that Nintendo covets. Nintendo needs to find a solution to that problem, and Fils-Aime needs better talking points.

Expanding unlimited calling to off-network phone numbers is one of the wireless industry’s newest ways to attract customers. Alltel was one of the first major carriers with its My Circle (which now has been rolled over to Verizon Wireless with the merger, called “Friends & Family”), then T-Mobile followed with myFaves. Sprint’s also doing something with “Any Mobile, Anytime” on select plans.

Now AT&T is getting into the game with a service called A-List. Like its competitors, the gist is the same: customers add their five most frequently called numbers. These are then treated like mobile-to-mobile calls, which are typically unlimited.

I will give kudos though. AT&T does not mess with the rest of the plan when you use the service. Neither your normal mobile to mobile or rollover minutes will be affected.

There is a catch. Like Verizon Wireless, you must have a $59.99/mo. or greater voice plan in order to use the service. This is somewhat troubling to me, as a large segment of AT&T’s growing iPhone population is from the get go excluded from the service.

Almost all of my iPhone-equipped friends are on the $39.99 monthly voice plan. The reasoning for this is simple: on top of that, a $39.99 $30 monthly data plan is required, already pushing the bill to nearly $70 a month. Add the fact most of us are texters, so we’re already now pushing that bill to near $90 a month even before taxes and fees, or any other service we might be inclined to add.

If we’d bump up to the next plan, there’s a good chance our monthly wireless bill would exceed $110, which in most cases is just too much to justify for. But through AT&T’s policies, none of us would qualify for A-List.

This seems rotten to me. I’m willing to place money on the fact that the average iPhone users bill is probably on the order of 50% or so higher than that of a non iPhone user. Look at AT&T’s ARPU (Average Revenue Per User) for the second quarter: $60. That is already about $10 below the base cost of owning an iPhone, without texting or anything else added.

Yes, iPhone users put a strain on the AT&T network. But at the same time, they are the basis of the company’s bottom line. The least the company could do here was include its “A-List” customers in on the deal.

Hopefully, the carrier reconsiders the requirements and allows for iPhone users who are already paying a lot every month to benefit from this new feature.

Update: I had the data plan cost wrong here, as well as T-Mobile putting back M2M with myFaves now (it wasn’t at first) so I’ve tweaked our math and wording here. Thanks to commenters for catching this.

I will eat my words, somewhat at least. After launching MMS for the iPhone on Friday, it appears AT&T has managed to launch the functionality without much of a problem after all. Yes, there were some hiccups and glitches, but nothing widespread from what we can gather.

My own personal experience with MMS has been positive. Friday was bumpy from time to time, including one or two messages that seemed to take minutes to send. But none of them failed, and to my knowledge every one of them made it to their destination. I could complain about Apple’s implementation of MMS, but hey that isn’t AT&T’s fault.

I’ve received some reports from my Twitter followers (shameless plug: @edoswald) which reported some problems early on:

User @CanonThom:

“An MMS message sent to a non-updated iPhone disappears. Sent to a non-iPhone but still AT&T seems to work. Non MMS texts work fine”

User @walter_theman:

“my signal is fading in and out, mms will send on occations and others get the red !”

AT&T’s Facebook page is also abuzz with some problem reports, but nothing that seems overly serious, here’s a roundup of the most common issues:

- Problems with receiving MMS from Verizon
- Problems sending MMS to Verizon (I have received/sent fine here)
- Intermittent failure to receive or send MMS
- Slowness in sending (I’ve seen this)

In the interest of fairness, AT&T contacted us shortly after my initial post asking to be able to respond. I have been in contact, however I haven’t received any official response as of yet. When it comes I’ll be sure to update this post.

I’ve also asked for some idea on the added strain on the network, which was apparently one of AT&T’s chief concerns when MMS was first announced for the iPhone earlier this summer.

Are you having problems at all? Have they been resolved? Let us know in the comments.

Man, we’re getting so close to having Apple as a real contender in the handheld game console wars, I can feel it.

As Gamespot points out, Apple’s music-themed event marked the first time that the company publicly argued why the iPhone and iPod Touch are better gaming options than Sony’s PSP and the Nintendo DS. Phil Schiller, Apple’s senior vice president of worldwide product marketing, went so far as to say those other two consoles are “not a lot of fun.”

Now, we can debate ad nauseum the merits of iPhone and iPod Touch gaming vs. the PSP and the DS. We can argue which device is the most successful, has the best games or has the greatest chance of survival. But that’s boring. What’s really great about the console wars is all the bickering and spin that goes along with it. In that regard, Apple showed that it’s ready to play hardball.

At yesterday’s event, one of Apple’s slides touted a catalog of 21,178 “Games & Entertainment Titles,” compared to 3,680 DS games and 607 PSP titles. Of course, it’s totally bogus for Apple to include “Entertainment” in the mix, as we’re strictly comparing gaming devices here. A quick check of Apptism shows 14,657 games on file.

If Apple’s still ahead, why fudge the stats? Because that’s what you do in the console wars. I’m reminded of when Sony argued last January that it’s a better value than the Xbox 360, assuming that you bought the basic Xbox 360 Arcade, then purchased the most expensive hard drive available and threw in an optional Wi-Fi adapter. Sure, the argument is valid, but the math is fuzzy.

And then, there’s all the trash talk. Back in February, I looked on with delight at the way Microsoft and Sony were sniping at each other. Yesterday, Schiller argued that “once you play a game on the iPod touch, you think ‘hey, [the DS and PSP] aren’t so cool any more…’” Burn!

Sony and Nintendo haven’t fired back yet (in fact, Sony’s been unbelievably timid on the matter), but if Apple keeps up this rhetoric, it’s only a matter of time until the sparks fly. I can’t wait to watch.

It’s not full-fledged multitasking, but Loopt will be the first third-party app to send out information even when you’re not actively using it.

The location services program, which tells friends where you are and finds nearby points of interest, has announced an “Always-On” service that continues to update your whereabouts in the background. Here’s the catch: Loopt itself is free, but Always-On will cost an extra $4 per month on your AT&T bill.

Business Insider’s Dan Frommer writes that Loopt struck a deal with AT&T, allowing the iPhone to beam out its location even though Loopt itself is not actually running. As Daring Fireball’s John Gruber writes, this is a server-to-server system, not an app that functions in the background.

The implications of the deal depend on what’s happening behind the scenes. If AT&T is simply providing a workaround for apps that want to send out information in the background, all this means is that other apps — more location services, mostly — could strike similar deals, as long as the app itself doesn’t need to function at the same time.

But let’s just speculate that AT&T has some sway over the iPhone’s inability to multitask. After all, any application that constantly sends and receives information equates to more strain on AT&T’s already inadequate network, so maybe the no backgrounding rule was a way to cut down on traffic. If that’s the case, we might eventually start seeing real multitasking, on the condition that iPhone users pay an additional charge when there’s a data exchange involved.

Given the uproar that would occur if customers started getting nickled and dimed on more monthly charges, I’m inclined to think deals like the one between Loopt and AT&T will be few and far between. But as much as it would irk me, I’d pay a little extra every month to listen to Slacker Radio while playing games or surfing the ‘net.

Remember in March, when Sony Senior Marketing Vice President Peter Dille dismissed the iPhone? “The iPhone games and apps are largely diversionary, whereas we’re a gaming company and we make games for people who want to carry a gaming device and play a game that offers a satisfying 20+ hours of gameplay,” he said in an interview with GameDaily.

I’d love to hear what Dille thinks now that Grand Theft Auto: Chinatown Wars is coming to the iPhone. The game, originally released for Nintendo DS in March, was announced for Sony’s PSP in June and will arrive on October 20. The iPhone version is scheduled for release some time this fall, 1UP reports.

This is the inverse of Sony’s recent announcement of PSP Minis, a set of small-scale, inexpensive games targeted at the upcoming PSP Go. While that move represented an attack on the iPhone’s cheap gaming marketplace (though Sony wouldn’t admit it), GTA’s migration to the iPhone is a counter-assault on the PSP’s 20-hour experience.

The announcement partly suggests that game developers and publishers are getting confident in the iPhone as a serious gaming platform. More importantly, if the iPhone version of GTA proves equal to its PSP and Nintendo DS counterparts, it opens the door for more ports of dedicated handheld console games.

I’m not simply talking about a paring down of big franchise games, such as Assassin’s Creed and Metal Gear Solid, because that’s already happening. What I’m wondering is, how long will it be before the same handheld video game is simultaneously announced and released for Nintendo DS, PSP and iPhone?

And if that happens, how long will it be before Sony finally acknowledges that there’s a third enemy in its midst?

Sony continues to insist that it’s not competing with the iPhone on gaming, even though the opposite is increasingly becoming true.

Tucked into Sony’s impressively newsworthy GamesCom press conference yesterday was an announcement for “PSP Minis,” a line of low-price, small-scale video games aimed at the upcoming PSP Go handheld. The list of planned games, including Air Hockey, Bowling and Pac-Man Championship Edition, sound a lot like what you’d find in the iPhone’s App Store.

This is a major about-face for Sony. In March, the company’s marketing VP Peter Dille derided the iPhone as a “separate business” that hosts “largely diversionary” games. He further explained that Sony is a gaming company that makes handheld games with 20-hour experiences. I guess Sony realized there’s also room for cheap and simple.

Still, the company won’t admit that it’s taking Apple on with PSP Minis. Here’s Gamasutra’s Leigh Alexander on follow-up with Playstation Network operations director Eric Lempel, who says Sony isn’t after Apple’s market share.

“It’s totally different,” Lempel told Gamasutra. “… It’s not open to users; these are professional developers, it’s not like what you’re seeing on that other platform.”

Someone needs to remind Sony’s handlers that “competition” doesn’t mean “approaching the market in the exact same way, warts and all.” This should be an opportunity for Sony to say “Yes, we are competing with Apple for handheld gamers’ money, and here’s how we’re going to take it.” Instead, Lempel seems unwilling to confront the truth head-on.

A game programmer is getting mouthy about the Wii, saying that an iPhone is more powerful for gaming.

This argument transpired at the forums (via GameZine) for TellTale, which developed Tales of Monkey Island as a downloadable title from the WiiWare online store. A programmer with the handle “Yare” explained that the Wii is just not meaty enough to address all of the issues players are having, including blurry textures and choppy framerates.

“Frame rate issues will probably get sorted out eventually, but keep in mind that the Wii is just not a powerful console,” Yare wrote. “An iPhone is much more powerful than a Wii, even.”

A boisterous claim, no doubt, but does it hold water? It’s hard to say given that neither Apple nor Nintendo freely discusses hardware specs. You can take a look at the leaked specs for both the Wii and the iPhone and be the judge, but even then you’d have a hard time making a direct comparison.

In any case, I don’t think it really matters. One of the things I like about WiiWare is how it forces simplicity. The console space is so otherwise littered with face-melting graphics that a space for constraint in game design and visual aesthetics is welcome. To that end, a couple of my favorite games for this generation of consoles – World of Goo and Bit.Trip Beat – are downloadable WiiWare titles. Both games have simple foundations, but they manage to create complex challenges without relying on technical muscle.

I understand some of Yare’s concerns, particularly that WiiWare titles can be no larger than 40 MB in size (Nintendo has not explicitly confirmed this, but has said the company encourages smaller games). With Nintendo now allowing access to games directly from an SD card, there’s room to relax those constraints, but that doesn’t mean the floodgates should open for games of all sizes. I don’t want WiiWare to become musclebound.

In the same way that Booyah Society is rooting for me, I’m really hoping the new iPhone app can do better than it has.

It’s an idea with a lot of promise, which is why I was excited to meet with one of the creators, Keith Lee, for lunch last week. The “social game,” as he bills it, offers “achievements” — like the accolades you get within Xbox 360 or Playstation 3 games — but for real-life accomplishments.

In other words, instead of getting a symbolic pat on the back for becoming a Level 40 Sword Master or scoring five headshots in 10 seconds, you’re congratulated for going to the gym or eating organic food. Or so it goes in theory.

Continue reading this story…

Cable provider Comcast has joined the legions of service providers and companies creating their own iPhone apps to interface with their services and offerings. It would be most useful to those with the so called “triple play” package: cable, Internet, and phone service.

The main functionality of this application splits into three parts. The first is an email application that will allow the user to check his or her email. But it functions more than just an email inbox. The users phone voicemail also uses this setup, although you can either select to view those in a different tab or mixed in with your regular mail.

I’m sure most of us will opt for the separate tab: with the amount of junk mail these days, your voicemails will likely just get lost in the mix. Nice feature here is Comcast’s use of iPhone 3.0 functionality — meaning you’ll be able to type in landscape mode just like you could do in the standard Mail app.

More than just voicemail — users will be able to view their received/missed calls from the application. If you so choose, you may click on the number to call or text the caller back from the iPhone.

If you have a Comcast Address Book, you will be able to sync the data there with the standard iPhone Address Book. This is a nice feature — and could be useful to those who may not have MobileMe but would still like that syncing functionality nevertheless.

Other functions include a Guide app, which will tell you what’s on television right now, and an “On Demand” feature which allows you to watch movie trailers of upcoming programming on the service.

However, what’s missing here, and what makes the app less than fantastic — err, Comcastic rather — is the lack of DVR control. PC Magazine’s Sean Ludwig points this out and i tend to agree. If it had this, I’d consider it one of the iPhone’s killer apps.

Alas, there may be some kind of technical hurdles to getting this done, but I think it definitely should be a priority in a future release.

After Apple removed “The Hottest Girls” application from the App Store, you may have thought that porn was gone from the iPhone. Think again: a company called iPorn pointed out today that it’s still in business.

These are the same folks that trotted a horse-drawn carriage in front of the Moscone Center during WWDC, complete with five scantily-clad women to advertise their product. You can bet that Apple was likely none too happy about that.

iPorn is able to stay afloat amid Apple’s likely opposition because it is a web application, which the company does not regulate. It’s one of the pitfalls of the Web Application structure — while it may have allowed Apple to give developers an “in” to the iPhone, it also made it possible for just about anybody to create an app.

It’s apparently a hit — iPorn claims some 45,000 registered users. Social networking tools are available, as well as your typical porn site offerings. So in essence, its everything “The Hottest Girls” was, and more.

The fact that applications like iPorn exist bring into question the possible need for more regulation of these Web Applications. Do these services act much in the same that regular ones do, so that parents can block stuff like this out? Faking your age to gain access to adult websites is pretty easy.

Accelerometers and a touch screen have their place in iPhone games, but when a classic like Mega Man 2 has its gameplay drastically altered to accommodate for dodgy controls, there has to be another way.

A couple of companies have created pad-and-button controllers for the iPhone. Most recently, 22Moo introduced the GameBone Pro in hopes of getting worldwide distribution. The controller uses the iPhone 3.0 OS’s new Bluetooth capabilities to connect wirelessly (a 30-pin dock connector also works). 22Moo also said it’s making a clip-on accessory for holding the smartphone and controller together.

GameBone isn’t the only controller concept out there. The iControl Pad, which has a Web site but not a commercially available product, snaps to the iPhone to allow PSP-style controls on either side.

I like these ideas, but their success rests squarely on support from Apple. Without it, game developers won’t program for the controls and players can’t be sure that enough games use the controllers. The GameBone’s official Web site touts “Made for iPod” and “Works for iPhone” certification, but the fine print clarifies that Apple approval is pending.

Apple may not want to approve iPhone game controllers for several reasons. Ars Technica once argued that button controls are a “regression into an old way of thinking,” and Apple may not want any part of that. Along the same line, button controls could encourage more people to seek old console emulators, which aren’t available without jailbreaking.

Still, there’s a level of precision buttons provide, and games like Doom would be better off with the added tactile feedback. If Apple wants to step up the iPhone’s presence as a game machine, it’ll allow for games of all kinds, not just those that require multi-touch and wrist-twisting.

A TechCrunch article citing research by SquareTrade, a company that sells insurance plans for smartphones, says that Apple’s iPhone is “an accident magnet.” I wouldn’t have drawn that same conclusion.

SquareTrade’s report, “One-Third of iPhones Fail Over 2 Years, Mostly From Accidents,” should be viewed with skepticism. For starters, while SquareTrade used  a sample of many thousand smartphones covered by its warranty products, it didn’t cleanse its data (for instance by removing unlocked phones), and performed no statistical tests. Rightfully, the report includes the disclaimer:

SquareTrade has made efforts to ensure that the data we present is correct. SquareTrade makes no warranty, express or implied, about the accuracy of the data. SquareTrade is an independent third party, and has no affiliation with any of the handset manufacturers cited in this study. Users of the information in this document acknowledge that SquareTrade cannot be he liable for any damages whatsoever to any individual, organization, company, industry group or representative arising from the use of this data.

TechCrunch seized on the report’s findings that over 20% of iPhones have been damaged in the last 22 months, with cracked screens being the leading cause of damage. But the SquareTrade report doesn’t report on damage rates for other phone models, so it’s impossible to judge whether iPhones are any more likely to crack (or croak altogether) than other brands. Phones, after all, are more likely to get dropped than desktop PCs, HDTVs, or printers–no matter who manufactured them.

The study does say that iPhones are “significantly more reliable” than phones manufactured by Palm and RIM (9.9% of iPhones cited in the survey malfunctioned, versus 15.3% of BlackBerry and 19.9% of Treo phones). And it says that the iPhone 3G is a more reliable handset than the original iPhone.

My statistics are a bit rusty, but a common test called a T-test would have shown whether there was any significance difference between the iPhone’s likelihood of being damaged versus its competitors. The same goes for its supposedly higher manufacturing quality. Bottom line: It’s worth thinking twice before drawing conclusions about the iPhone from a single survey or news report. Colorful graphs always don’t tell us much.

File this one under “irony”‘ Microsoft’s is providing an incentive to purchase Apple’s iPhone though its Bing marketing campaign. In an attempt to entice users to try its Bing search engine, the company is offering 35% discount for AT&T’s online store, which sells iPhones.

When Microsoft CEO Steve Ballmer said that Apple’s iPhone had “no chance” of gaining significant market share, no one would have expected that Microsoft would lend a hand one day.

The discount is valid for both existing and new customers. However, it is not immediately deducted from the purchase price for AT&T customers. Happy shopping. Could I also interest you in some Bing merchandise?

AT&T is trying to make the case for exclusive deals for phones, saying they “stimulate” innovation. Yes, you heard that right: by sticking it to the consumer and forcing them to a certain carrier, we’re enjoying innovative products. I’m not exactly following this, and neither is Capitol Hill either.

The Senate Committee on Commerce, Science and Transportation held a hearing on Thursday in which AT&T made this exact case in front of bewildered Senators. Massachusetts Senator John Kerry was one of them, saying that why he understood the economic benefits, he wasn’t seeing a benefit otherwise.

Kerry said that he failed to see why a manufacturer would develop innovative products for a single outlet rather than build it for the biggest market possible, to paraphrase his statements.

AT&T retail sales chief Paul Roth responded that often, carriers and manufacturers will work together closely in order to bring phones to the market. However, it’s pretty likely given the way Apple operates that this wasn’t the case with the iPhone.

Opposition just wasn’t a Democratic thing — even Republican senators like Mississippi’s Roger Wicker expressed displeasure, saying the deal could harm rural residents right to choice.

In addition the AT&T/iPhone deal opened a new chapter in the debate over exclusivity contracts. Rather than the typical several-month period, the iPhone deal gave AT&T several years. This concerns regional carriers most as they typically can not compete for these exclusivity deals.

It’s high time the government got involved in this debate. There really is no benefit to allowing carriers to shut out others when offering mobile devices. Yes, I understand the iPhone does require some network changes in order for it to work to its fullest extent, however to me consumer choice trumps all others.

A lot of folks on AT&T right now sure as heck wouldn’t be there if the carrier didn’t have a stranglehold on the device here in the US. Count me as one of them — I’d rather be back with T-Mobile.

(Hat tip: PC World)