N-Gage may sell cheaper than announced

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Nokia started to ship its revamped N-Gaga gaming phone Wednesday, and said it could sell cheaper than first announced because of operator subsidies.

The world's largest mobile phone maker Nokia started shipping its revamped N-Gage gaming phone Wednesday, and said due to operator subsidies it could sell cheaper than previously flagged.

Nokia said the phone could be found in Europe, Africa and Asia Pacific for as low as 49.99 euros ($60.60) with subsidies, some 50 euros ($60.47) below the lowest price given by the firm in April when the N-Gage QD was unveiled.

"It could go to zero euros in some markets with subsidies," Nokia spokesman Damian Stathonikos said. He added the top, unsubsidized, price of the phone remained 199 euros ($240.66).

After a major launch of N-Gage last year Nokia has admitted sales missed expectations due to, among other things, the phone's small screen and an awkward way of changing games that requires the user to first remove the phone's battery.

The N-Gage setback was followed by two profit warnings in 10 days in April when Nokia said it could not metrobust market demand due to gaps in its phone portfolio.

The firm has since cut prices on some phones to win back market share, and has said that handset margins would be under pressure until its handset portfolio is more competitive.

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