Apple is probably better at hyping its products than it is even at designing them, so pronouncements that the iPhone is a console killer should probably be taken with a grain of salt. I have played a few games on the iPhone: Super Monkey Ball for some time, Asphalt 4, a disturbingly male-centric racing game, and Vans SK8: Pool Service most recently. The controls can be problematic; the accelerometer was not designed to control games and it generally performs poorly when pinpoint control and immediate response is required.
The learning curve, in my opinion, far exceeded that of console or DS controls. Some games include a combination of accelerometer control and taps, which makes for an awkward ballet with your primary concern being to not drop the phone. In addition to the control issues, the iPhone’s battery wears down even faster when gaming. I need to recharge every night, and any length of gaming makes even a nightly recharge insufficient. This is likely related to the size of most game files and the processing power needed for play. There is no question that the graphics are excellent. I did not expect much when I played my first game, and I was shocked by the level of detail in some cases. Need for Speed: Undercover is amazing and seems to be among the class of iPhone games. Like many others, it keeps up with the DS in graphic quality.
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