Peggling(TM) - or dropping the price of your iPhone game to 99c for a short period of time - is one of the key weapons in the armoury of iPhone marketeers.

Its limitations are becoming apparent however.

As it previously did in July 2009, Konami dropped the price of its entire iPhone catalogue to 99c on 16th November.

This covered Dance Dance Revolution S+, Dance Dance Revolution S, Field Prowlers Police Rush, Krazy Kart Racing, Metal Gear Solid Touch, Power Pros Touch, Silent Hill: The Escape, and Silent Scope.

Something of a blunt force method, the results demonstrate that such an approach is unlikely to be successful across the board.

Few can be winners

Obviously, well known - and previously expensive - games such as Metal Gear Solid Touch (which was $5.99), have leap up the charts. It's currently #8 in the US Paid chart and #29 in the US Top Grossing.

The fairly well reviewed Krazy Kart Racing (previously $2.99) was up 40 places to #61 in the US Paid chart, while Silent Hill: The Escape (previously $4.99) was up 18 spots to #82.

Significantly, neither featured in the Top Grossing chart, which is the mark of making decent revenue.

Right tool for the job

Additionally, the fundamental point of Peggling(TM) is that it will raise the chart position of games when the price reverts to normal, because it's very hard to make additional revenue by swapping price for volume of sales, especially on a $5.99 game.

Effectively you're using the price drop to subsidise a better future chart position.

As for the other games Konami Peggled(TM), operating in a busy release schedule - titles such as Ravensword, Star Wars: Trench Run, Harry Potter: Spells and Call of Duty: World at War: Zombies have also been released this week - they haven't been able to pick up any noticeable traction even at 99c.

Indeed, there is an argument that Peggling(TM) a number of games simultaneously is as likely to cause canabalisation of sales - as few people are going to purchase more than a couple of new games at sale prices - than the halo effect that might be created compared to just dropping the price of high profile games.