You got the touch

For a while, the miracle of digital distribution seemed to only be popular on the PC end of gaming. The opportunity for small indie developers to make their works available to the gaming public for a fraction of the price of retail software has opened the doors for even more people to step into the industry. The current generation of console and handheld hardware has opened up more digital distribution channels with services such as Xbox Live Arcade, WiiWare and the PlayStation Network, but one of the biggest surprises is the success of the App Store on Apple's iPhone and iPod Touch range.

In just over a year of operation, the App Store has become home to over 65,000 individual applications ranging from virtual bubble wrap to touch versions of popular puzzle games like Tetris or Bejeweled. With prices ranging from free to hundreds of dollars, the option for cheap digital distribution of games has taken off. Independent developer Luc Bernard took a chance on the App Store with his strategy game Mecho Wars, and has reported great success from digital sales. On the other side of the coin, big name publishers like EA and Capcom are releasing App versions of some of their biggest franchises, including Madden NFL 2010 and Resident Evil 4.

The success of the App Store has changed Apple's marketing position towards the iPod Touch, with recent advertisements pushing its gaming capabilities over its other multimedia functions. The company has even taken swings at Nintendo and Sony in recent months, touting the App Stores larger library of software compared to both retail and digital offerings available on the Nintendo DSi and PlayStation Portable.

While the DSi is relatively new to the digital market, the PSP has offered access to the PlayStation Network for some time, but failed to reach consumers on a marketing level. The newly released PSP Go! is taking risks by ditching the disc drive featured on older PSP models and working entirely in the digital arena. Over the year, Sony has worked with publishers to make the existing library of games available in digital forms along with hard copy discs for retail – but higher price points and lack of regular sales have kept consumers at bay from ditching their local EB Games of JB Hifi. Although this problem may soon be resolved with the introduction of PSP Minis – smaller, available via download only games released at lower price points.

For now, the biggest difference between these choices are entry prices. All current PSP models can access the PlayStation Network, and are available for AU$279.95. The PSP Go! will be a bit more intimidating with an rrp of AU$449.95. Apple comes off slightly cheaper for consumers with the lowest entry price for the iPod Touch being the 8GB model for AU$268, with 32GB and 64GB editions also available for AU$399 and AU$549 each.