Nokia's Game for a New Challenge

Game consoles seem to be just the stimulus for sagging sales, say Nokia bulls. This year's success of Nintendo's GameBoy and particularly its new GameBoy Advance is often cited as evidence that gamers are flocking to portables. Nokia's phone would be a big jump, technologically for the game box. N-Gage users will be able to download games on the handset and even play against others via wireless connections.

But critics question whether the success of a long-standing favorite with a $100 price tag can easily be imitated by a gaming upstart hoping to get between $300 and $500 per device.

And Nokia isn't the only handset maker offering downloadable games. Both LG and Sanyo have models already out in the market. PlayStation-maker Sony is expected to release a portable gaming device that may or may not include a phone.

While the opportunity may be great, it may take more than the upcoming holiday season to gauge its success.

One day we'll have converged devices, says a New York tech fund manager, but N-Gage will be "meaningless in the near term."

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