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How Big Will iPhone Gaming Be?

The torrented apps will presumably only work on jailbroken phones. At least for now, that is a minority of users. The issue is not so much stopping the thieves, but keeping users happy enough with the official system not to jailbreak.

Because even non-stolen applications sold to jailbroken iPhone users - for example the apps that are only available to jailbroken phones, such as video recording utilities - are a loss to Apple. So that should be Apple's main motivation.