iTunes apps going to zero? Not likely.

In terms of free market, there are arguments that pricing will eventually go to zero. As more competitors enter the market, each can only charge so much for the same commodity. This was said of the iTunes app store.

I don't hold this to be true, and the app store is definitely not trending in that direction, especially not for games.

Current there are six games in the top 10 paid apps. The lowest price game is $1.99 and the highest priced game is $5.99. The median price between the six apps is $3.99.

In December, there has been a heavy influx of higher priced apps with market players like Gameloft and EA releasing numerous $9.99 applications. These apps have climbed the charts and held their ground against competitors that have price cut their applications as much as 80% in order to maintain chart position.

The most relevant data, and most telling is the information that is not available yet. Since these chart positions are before the holidays, there is a high chance of influx of new customers and spending money as iPhones, iTouches and iTunes gift cards are given as gifts.

All in all, in just five months since the app store officially launched, the marketplace is settling. In terms of games, I'm excited to see that $0.99 applications are not defining the market. The next step is to see if game companies are willing to break the $9.99 ceiling with applications that have potential to rival those on the Nintendo DS or Sony PSP.