The N-Gage’s speaker was about the size of a large taco and required user to hold it with the thin side along the side of their face to use it as a phone. It was in a manner often referred to as "side talking." This way looked ridiculous and caused users inconvenient as this may embarrass them. It was hardly to accept of calling with the way of “side talking” from time to time by using Nokia N-Gage. And, since the handheld was designed for GSM networks, the platform was useless to Verizon Wireless and other networks’ customers and to gamers in Japan. Furthermore, there was no camera designed for it which consumers would definitely move their sight for purchasing it. Figure 26. Calling problem caused by Nokia N-Gage In another major design
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Nokia made some critical errors here. The competition was a long way ahead of the product they had designed for themselves, and the N-Gage also launched as the most expensive handheld gaming device at that time. Since its release, Nokia N-Gage retailed for around $299, which was just too much for most. Not only the N-Gage itself, the games, applications and accessories were overpriced and cannot afford by most of the users as some of them may think that it did not worth that much. This high pricing can have several causes. Nokia might have underestimated the impact of a high price per unit on the gaming market, because the price dropped $100 one week after launch due to dissatisfying of consumers. Another cause could be an error in rounding up the total manufacturing costs. The N-Gage has a lot of functionalities like radio, Bluetooth and a GPRS receiver, and these extra functions have their effects in the manufacturing costs as well. Error of making a compromise between these two target markets has greatly brought in the low sales rate and the eventual failure of the Nokia …show more content…
The effort of support has entered the stage a little while after the launch of the N-Gage. At this point it turned out that although the N-Gage was released as a gaming device, but there was only a very limited range of available games. Until now, only 58 games are available for Nokia N-Gage (N-Gage.com) eight years after the original N-Gage launch.
On the other hand, application support was also a big trouble encountered in a Nokia N-Gage. However the N-Gage supports something that shows similarities with Apple’s App Store (apple.com), there were only few applications available for the N-Gage.
There are certain public comments caught by screenshot. In this picture, there is clearly stated those negative comments by the public such as the battery problem, limited game selection, bad graphic, and so on. Cost Analysis
To explain about the failure and loss, we attached the financial reports of 2004. The reason why we chose to do so is because this was the first full financial year since the introduction of the product in late 2003. As for real cost calculations this shouldn’t make much of a difference, since Nokia has had a steady overhead for quite some time.
Overhead costs Total costs 2004 (million) Allocated costs (million) Cost of sales -18 133 -60.0
Research and development -3733 -266.6
Marketing and advertising -2 552
Nokia made some critical errors here. The competition was a long way ahead of the product they had designed for themselves, and the N-Gage also launched as the most expensive handheld gaming device at that time. Since its release, Nokia N-Gage retailed for around $299, which was just too much for most. Not only the N-Gage itself, the games, applications and accessories were overpriced and cannot afford by most of the users as some of them may think that it did not worth that much. This high pricing can have several causes. Nokia might have underestimated the impact of a high price per unit on the gaming market, because the price dropped $100 one week after launch due to dissatisfying of consumers. Another cause could be an error in rounding up the total manufacturing costs. The N-Gage has a lot of functionalities like radio, Bluetooth and a GPRS receiver, and these extra functions have their effects in the manufacturing costs as well. Error of making a compromise between these two target markets has greatly brought in the low sales rate and the eventual failure of the Nokia …show more content…
The effort of support has entered the stage a little while after the launch of the N-Gage. At this point it turned out that although the N-Gage was released as a gaming device, but there was only a very limited range of available games. Until now, only 58 games are available for Nokia N-Gage (N-Gage.com) eight years after the original N-Gage launch.
On the other hand, application support was also a big trouble encountered in a Nokia N-Gage. However the N-Gage supports something that shows similarities with Apple’s App Store (apple.com), there were only few applications available for the N-Gage.
There are certain public comments caught by screenshot. In this picture, there is clearly stated those negative comments by the public such as the battery problem, limited game selection, bad graphic, and so on. Cost Analysis
To explain about the failure and loss, we attached the financial reports of 2004. The reason why we chose to do so is because this was the first full financial year since the introduction of the product in late 2003. As for real cost calculations this shouldn’t make much of a difference, since Nokia has had a steady overhead for quite some time.
Overhead costs Total costs 2004 (million) Allocated costs (million) Cost of sales -18 133 -60.0
Research and development -3733 -266.6
Marketing and advertising -2 552