Nokia launches GameBoy killer
05-02-2003
by Andrew McLindon

In a clash of tech titans, Nokia is to take on Nintendo with the launch of a handheld gaming device.

Nokia's N-Gage is a combination GPRS mobile phone and video game player that will look similar to the best-selling GameBoy Advance from Nintendo, which has had sales of over 70 million units since its launch in early 2001.

Nokia is hoping that its move into this fast-growing market can boost its fortunes. Although it is the world's biggest mobile phone maker, shipping 150 million handsets in 2002, its sales remained flat during the year while the average handset price fell.

According to ScreenDigest, mobile gaming will be worth EUR2.2 billion in Europe by 2006. The research firm expects the vast majority of these sales to be from downloads.

However, at the moment, Nintendo dominates the sector, a point that was acknowledged by Nokia's executive vice-president for mobile phones in November. The Japanese company has a very strong brand in the area and has established a vast library of games.

According to analysts, Nokia will have to overcome both of these obstacles and, crucially, get its pricing strategy right, if it is to succeed. GameBoy Advance units sell for less than EUR100. Sega will develop games for the N-Gage and, like Nintendo, Nokia is expected to be becomes a games publisher as well.

One advantage that N-Gage may have over Nintendo is that it will offer true wireless multi-player gaming. N-Gages will have Bluetooth connections that will allow a number of players to compete wirelessly against each other as long as they are within a certain distance. GameBoy Advance's multi-player function requires the more awkward method of players being connected to each other by cables.

Pricing and launch dates for the N-Gage are expected to be announced by Nokia on Wednesday.