I'm familiar with game development. I make games for the iPhone in my spare time and I make more money than I ever have in my life, and my apps aren't even popular compared to things like Ocarina or Tweetie or Pocket God.
I'm truly, genuinely surprised, as most indie game developers I know have been lucky to recoup their costs, and fewer have seen any sustained revenue to speak of. Some got lucky, most have not.
What games do you develop, if you don't mind shedding the mask of anonymity? (I understand if not, I'm anonymous here because it allows me to actually speak freely).
At this date in time, I am the model for an iPhone business. A single guy making indie games. It might morph into something different in the future. I imagine there will be a separate path for business applications. Perhaps $30 CRM apps will be sellable in a bundle with enterprise software to large companies. But I don't think end users will ever pay $30 for iPhone apps except for very niche cases. Most people view their phone as an entertainment device, apps are on the same level as ringtones. The market may correct itself by flushing out all the players who can't make a profit on a $1.99 game, but it's not going to correct itself by suddenly having mostly $30 apps on the app store.
Maybe you're right, but I hope not. I'd be curious how you can afford rent on $1.99 game sales, what sort of revenue "more money than I ever have in my life" means, and whether you've seen more than one of your released applications succeed.
