“The DS has the potential to be the best-selling interactive entertainment platform ever,” says David Cole, an analyst with DFC Intelligence.

DFC Intelligence also expects the Sony PSP to establish a solid position in the marketplace. However, a great deal will depend on the focus Sony Computer Entertainment decides to put on promoting the PSP platform over the next few years. The report contains two forecasting scenarios for not only the Nintendo DS and Sony PSP, but also the possible future entrance of new portable systems by 2009. According to Cole, “Under the right scenario, by 2011 the combined installed base of the DS and PSP could exceed that for the Nintendo Wii, Sony PlayStation 3 and Microsoft Xbox 360.”

The report also has a complete discussion of game genres and business models for third party software publishers. Historically, Nintendo has been able to dominate the portable game market by developing games specifically suited for the unique attributes of the portable platform. However, there is growing opportunity for third party publishers and developers of portable games. According to DFC, publishers of not only casual games, but even developers of high-end PC games like role-playing (RPG), massively multiplayer online games (MMOGs) and turn-based strategy, could benefit from the rising use of portable platforms among adults. Meanwhile, existing console game publishers have found it is possible to make over $100 million in revenue from a single PSP title based on the right franchise.

The 185-page report, The Market for Portable Video Games, contains complete five-year forecasts by platform, a look at portable game software, portable game online trends, and business models and revenue expectations for game publishers. This report also includes the white paper Issues in the Mobile Game Market. Other new DFC reports include Video Games 2006: The Year in Review and Historical Retail Sales for the Video Game and Interactive Entertainment Industry.