The Ovum View: N-gage - Nokia guns for gaming

Nokia has unveiled presenting its mobile phone aimed specifically at the gaming market. It’s a bold move that signifies the coming of age of mobile phone gaming. The introduction will be a valuable learning experience given that mobile gaming is destined to be an important part of wireless entertainment services. Yet the Finnish giant might be fighting the wrong game, says Ovum analyst Dario Betti

When Nokia, the largest mobile phone producer, started talking about a gaming device the entire industry sat up and took notice. The N-gage is an optimised device. This means that, at its heart, it is still a phone, only it is enhanced beyond the typical gaming capabilities of ordinary phones.

It doesn’t have the typical candy-bar or clam shell form factor but a horizontal shape that resembles the undisputed leader in mobile gaming devices: Game Boy Advance, from Nintendo. Not just the form but also the buttons are reminiscent of Nintendo’s devices: on the left a cursor pad (for movements), on the right the numbering pad, with the number '5' marked in red as a hot key (for firing, jumping and so on). The colour screen sits in the middle, just like in the Nintendo, but it is a bit smaller.

Inside, the phone is top of the range. It runs on the Nokia Series 60 platform and the Symbian OS. And just like the Nintendo it will be possible to buy games on cartridges (memory cards in MMC format). Interesting additions include a Bluetooth connection (for face-to-face multiplayer games), and Java (essential for downloading games).

The horizontal form of N-Gage is also very similar to Nokia’s very own 5510 – its first entertainment-specific model. It was aimed at the text crazy (with its QWERTY keyboard) and music lovers (thanks to an MP3 player and an FM radio) and had some rudimentary games.

Despite having some happy followers, the phone never broke its niche status. It was an unusual phone, and even Nokia admitted in its promotion: “It looks strange but it sounds good.” Ultimately, even in terms of price, features and performance some competing MP3 devices could do much better.

And things don’t look that different for Nokia’s latest creation. The maximum the mobile giant can expect from the N-Gage is niche product status.

The first and most important disadvantage of the N-Gage is the number of successful game titles available for the Nintendo. Despite its relationships with software developer Sega, Nokia will be at a disadvantage. There are about 460 titles available exclusively for the Game Boy Advance, and they include very well known brands such as 'Super Mario' and 'Pokemon'.

A loyal following distinguishes Nintendo’s mobile platform: by the end of 2000 the company had sold more than 100 million Game Boys, since its introduction in 1989.

As yet, there are no indications from Nokia on price but it is likely to be a high-end device costing at least E300, including some subsidies from operators. For that amount, users could alternatively buy a Game Boy (for about E100), a medium-priced phone from Nokia (E150) and even have change left for the odd Nintendo game or two.

Users are not buying high-end phones as eagerly as Nokia predicted. For the crucial Christmas period, Nokia reported a slower than expected take-up of new MMS-enabled phones in Europe. Medium-priced phones were more attractive to the large market.

So who is going to use the device? Not the dedicated gamers: they probably already have a Game Boy (and games) and the N-Gage as yet offers little more.

The Game Boy is particularly popular with teenagers, and Nokia might want to reach an older crowd. However, 24-32-year-olds would need to give up their stylish new phones for a bulkier phone-plus-game device. It’s going to be a tough sell.

Game over?

The introduction of a terminal such as the N-Gage can only be good news for the mobile gaming industry. The N-gage is a progression in terms of the mobile gaming experience: handset manufacturers and service providers should look and learn from it. However, the phone itself tries too hard to convince dedicated gamers to join Nokia.

There is, however, plenty of business left in the market for casual gamers. These people only think of gaming during 'downtime' (waiting for a bus, for example) and they are not serious enough about gaming to buy a Game Boy advance. Casual gamers are looking for a phone first, one that could possibly do some games as well. Here Nokia and other mobile phone manufacturers have the advantage. There is still plenty of business to gain before trying to fight it out with Nintendo.

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