Nokia Says It's Pleased with N-Gage Game Launch

Skull · Nov 5, 2003, 11:06 AM

NEW YORK (Reuters) - Mobile phone maker Nokia Oyj said on Tuesday it is pleased with demand for its N-Gage video gaming phone, despite reports of poor early sales and scathing reviews.
The world's largest mobile maker said it had sold 400,000 N-Gages to retailers and consumers. Analysts have pegged consumer sales at a fraction of those to retailers.

Two U.S. retailers, GameStop Corp. and Electronics Boutique Holdings Corp., have slashed the price of the phone by a third only two weeks after its launch. They listed the N-Gage at $199.99 after rebates, down from $299.99 when it debuted on Oct. 7.

"We are pretty pleased with the viral uptake from consumers and the feedback that we are getting, but we have a lot to do to make sure our expectations are in alignment," said Nada Usina, general manager of Nokia's Entertainment and Media segment in North and South America.

Speaking at an interactive entertainment conference in New York, Usina reiterated Nokia's forecast of sales of more than 6 million N-Gages by the end of 2004, as the gadget seeks to gain a foothold in the portable gaming market controlled by Nintendo Co. Ltd.'s Game Boy line.

Nintendo expects sales of its Game Boy Advance to top nine million this year.

Usina said demand for the product would build at a pace between that typically seen for phones and the much faster uptake of gaming devices.

"We are mixing a telecom model where typically you roll out in a couple markets and (demand) builds before its peaks and drops off, and the game market where it is 'boom' then it goes away," she said.

John Bucher, wireless equipment analyst for Harris Nesbitt Burns, which organized the conference, said it will be months before true sales figures for N-Gage are clear.

But for Nokia, which introduces many new mobile phones each year and has billions in cash reserves, there was little downside in taking a chance on the $10 billion gaming market.

"If that thing isn't a smash hit, that's OK," he said. "It will have no impact on earnings. They will take all their lessons learned and wrap it into the next one."

Nov 5, 2003, 11:06 AM	#1
Skull Boney Admin Join Date: Nov 2003 Location: somewhere over the rainbow Posts: 659 Rep Power: 59	Nokia Says It's Pleased with N-Gage Game Launch NEW YORK (Reuters) - Mobile phone maker Nokia Oyj said on Tuesday it is pleased with demand for its N-Gage video gaming phone, despite reports of poor early sales and scathing reviews. The world's largest mobile maker said it had sold 400,000 N-Gages to retailers and consumers. Analysts have pegged consumer sales at a fraction of those to retailers. Two U.S. retailers, GameStop Corp. and Electronics Boutique Holdings Corp., have slashed the price of the phone by a third only two weeks after its launch. They listed the N-Gage at $199.99 after rebates, down from $299.99 when it debuted on Oct. 7. "We are pretty pleased with the viral uptake from consumers and the feedback that we are getting, but we have a lot to do to make sure our expectations are in alignment," said Nada Usina, general manager of Nokia's Entertainment and Media segment in North and South America. Speaking at an interactive entertainment conference in New York, Usina reiterated Nokia's forecast of sales of more than 6 million N-Gages by the end of 2004, as the gadget seeks to gain a foothold in the portable gaming market controlled by Nintendo Co. Ltd.'s Game Boy line. Nintendo expects sales of its Game Boy Advance to top nine million this year. Usina said demand for the product would build at a pace between that typically seen for phones and the much faster uptake of gaming devices. "We are mixing a telecom model where typically you roll out in a couple markets and (demand) builds before its peaks and drops off, and the game market where it is 'boom' then it goes away," she said. John Bucher, wireless equipment analyst for Harris Nesbitt Burns, which organized the conference, said it will be months before true sales figures for N-Gage are clear. But for Nokia, which introduces many new mobile phones each year and has billions in cash reserves, there was little downside in taking a chance on the $10 billion gaming market. "If that thing isn't a smash hit, that's OK," he said. "It will have no impact on earnings. They will take all their lessons learned and wrap it into the next one."