I think Nintendo DS and PSP games go for somewhere between $25-$40 new. And I think Apple may be trying to go after these two in some way given that they keep calling the iPod touch and iPhone a gaming console. Given that, I'd imagine most dev's wouldn't bother with the Apple platform once the new wears off if they are selling the same games for $5-$10.
Then again, I have a hard time calling this a gaming platform since there are no physical controls, which limits the usability of so many games. When you can't see the action because you have to tilt the device forward, or have your thumb blocking things, it's annoying. As such, I wouldn't be willing to pay $20 for a game on the device, where I would and have on the DS. This platform just isn't a games device for me, even though I do have a few games on mine, I never put in the same amount of time or effort as I may with my DS or home consoles. More like short 5 min bursts while waiting for something.
A larger screened device would almost need it's own App Store, or a better way to designate the difference of required devices. Dev's would have to build their apps and games at whatever resolution and power that new device may have, which might cause them to run worse on the existing platform. One of the main benefits of a true gaming console is the fact that the hardware doesn't change dramatically, therefore allowing devs the comfort of knowing that their software will work on all target devices the same without requiring multiple builds.
This is why I'm a bit concerned if the next iPhone has a significant hardware update coming out this year. It would mean that devs could either support all existing devices, only the new device, or both. Both would almost certainly drive up the development costs and therefore our costs. Plus the rewriting of older apps to work with the new hardware. I hope Apple has an elegant plan for this other that allows all apps to scale to the new hardware.
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