Blindsided: Adobe Gaming Deal Shows the True Cost of Apple's Control Freak Needs

Apple (APPL) head Steve Jobs may consider Flash an inefficient software, but independent video game developers have been using it as a low-cost way to create and distribute in-browser titles. Adobe's (ADBE) new agreement with major Flash gaming hub Kongregate underlines the size of the audience Apple effectively dissed. It also outlines the sacrifices Apple will be making to keep its walled garden.

From Kris Graft at the gaming site Gamasutra:

Kongregate on Thursday announced a partnership with Adobe Systems on the beta launch of Flash Player 10.1, which allows for Flash-based mobile gaming on Google's Android 2.2 mobile operating system.

Kongregate CEO Jim Greer told Gamasutra that Android's Flash support gives Flash game developers a viable alternative to iPhone, iPod Touch and iPad. "I think Apple's decision [to not support Flash] is ultimately about extending its lead in mobile apps by making it as hard as possible for developers to target multiple platforms," said Greer. "Flash game developers and players have gotten caught in that crossfire."

As part of the agreement with Adobe, Kongregate launched a mobile site, which currently has over 100 browser-based games optimized for mobile devices, all integrated with Kongregate's community features.

Greer co-founded privately-held Kongregate in 2006. The website hosts almost 30,000 free-to-play games and boasts community features to add "stickiness." It generates one-third of its revenue through microtransactions and virtual goods sales, with advertising and sponsorships making up the rest. Developers using microtransactions get 70 percent of revenues after they recoup their advance. Kongregate said it has over 8,000 developers making games for the site.

It represents a missed opportunity for Apple -- and a potentially lucrative one at that:

Ads: Greer says most of the revenue is received from ads, which Apple is just getting up to speed with its iAd program (cited as the reason the FTC approved Google's AdMob purchase).
Mobile-ready titles: The Kongregate games tend to be simple, addictive and brief, making them ideal for the mobile platform.
Microtransactions: Like Zynga, Electronic Arts and other publishers, Kongregate is cashing in on in-game purchases. Apple has the in-app purchase infrastructure in place, but, with no Flash, it doesn't matter.

In other words, Apple's concerns about blocking Flash because it's not getting a piece of the Flash gaming pie are unjustified. Flash-connected ads, loyal audiences and microtransactions will be going to Adobe-supporting platforms.

Worst of all, the Adobe-Kongregate deal virtually guarantees that the noteworthy gaming site won't be making an effort to adapt to Apple's rules. Google Android phones have the Kongregate library now, but the Google Tablet will have 30,000-plus built-in games -- before it even hits the shelf. It could be a deciding factor in the iPad/G-Tablet's fight for the gaming buck.

Photo of Radx's Enough Plumbers on Kongregate Related:

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