Yikes. We knew apps in Android Market weren't exactly selling like hotcakes but with newfound buzz and interest in Android from the recent releases of the DROID, DROID Eris, HTC Hero, etc. we figured developers would continue to plug in and eventually reap the benefits. Unfortunately, Gameloft thinks differently. They've chosen to cut back on Android development due to the 'weakness' of Android Market. To quote:

We have significantly cut our investment in Android platform, just like … many others. [The Android Market] is not as neatly done as on the iPhone. Google has not been very good to entice customers to actually buy products. On Android nobody is making significant revenue.”

According to Gameloft, one of the biggest mobile game publishers around, they're selling '400 times more games on iPhone than on Android'. That's an astounding difference but could probably be explained. Perhaps Android users aren't purchasing apps because of the relatively miniscule available memory for apps on Android devices. Or maybe looking at 400x sales isn't fair considering Android phones have yet to take off like the iPhone has (but in time, surely will). Either way, we think there's still a lot more to be said about the success of Android Apps than what Gameloft is saying. Cutting back investment in Android right now may be a little too rash.

[via the iPhone blog]