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I happen to know someone who makes games for the Kindle, and they sell, so people definitely are interested in them. Granted, it’s interactive fiction, which is already literature, so it makes sense, but I don’t see why other games would be less popular. Though frankly I was expecting more intellectual games such as chess to be at the top, and they aren’t (chess is only #25 best seller). But the market definitely exists.
I have a couple of word games (throw in the vowel is the most used) on my Kindle that I will walk through a few puzzles to fall asleep with.