This whole iPhone as a gaming platform thing might just be catching on. According to a report by mobile analytics firm Flurry, revenue from games sold for Apple's touch-based devices grew from $115 million in 2008 to an estimated $500 million last year in the US. Impressive indeed -- but even more so is Flurry's research showing that iPhone / iPod touch games now account for at least 19 percent of total US handheld software revenue, up from 5 percent in 2009.

Flurry's findings show that most of that share has been taken away from Sony's PSP, which accounted for 11 percent of 2009's handheld software revenue, down from 20 percent the year before. Money taken in from Nintendo DS game sales, on the other hand(held), only decreased five percent since 2008, with Flurry pegging it at 70 percent of the market in '09.

The firm sees Apple continuing to put the hurt on PSP software revenue, pointing out that while downloadable iPhone and iPod touch games are selling "in droves," Sony's introduction of the PSP Go and an increased focus on digital game distribution didn't help the platform hold any ground.

[Via Engadget]

This article was originally published on Joystiq.