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Nokia Sees Broader Market For New Gaming Console

by Thomas on June 11, 2003 @ 5:09 a.m. PDT

Nokia Corp. is aiming its N-Gage gaming console at a different and potentially larger market than that of the likes of Nintendo Co. Ltd.'s GameBoy, the head of the Finnish company's entertainment and media arm said Wednesday.

"GameBoy is for 10-year-olds. If you're 20 or 25 years old, it's probably not a good idea to draw a GameBoy out of your pocket on a Friday night in a public space," Ilkka Raiskinen said.

Raiskinen said this older audience, targeted by Nokia's hand-held game-and- cellphone-in-one, presents a "bigger opportunity."

A number of software publishers, including Eidos PLC and Activision Inc. (NasdaqNM:ATVI - News) , are offering games for the N-Gage platform, and Nokia is also developing its own games, such as "Path to Glory," which is due out next spring.

Raiskinen said the cost of developing a game is roughly between $100,000 and $ 500,000.

N-Gage carries a suggested retail price in the U.S. of $299, which Raiskinen said would cover the cost of the handset and "depending on your bargaining power" possibly some games.

It will be up to retailers whether the handset is sold bundled with several games. Nokia suggests a price of $30 to $40 for each game card.

Game developers will get royalty fees of up to 70% for each game, though some will be paid a flat fee, Raiskinen said.

The N-Gage goes on sale worldwide on Oct. 7.

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