Nokia has slashed the number of N-Gage games it will introduce this year.

The firm admitted that sales of the N-Gage device had been lower than initially expected and that there would now only be 40 games available to consumers in time for Christmas.

Pasi Pölönen, games publishing director of Nokia's entertainment and media business unit, said in December 2003 that the the company intended to launch 50 to 100 titles by the end of 2004.

Matti Alahuhta, executive vice president at Nokia, told delegates at Nokia Connections 2004 yesterday: "When we introduced the first N-Gage product we said that it would be a big challenge to enter this new segment and that it will take two years to make any conclusions on how successful it will have been.

"We have had high sales volumes but they were not in line with our expectations."

Alahuhta said that the firm had now improved its gaming technology and would have 40 games available for Christmas.

The Finnish mobile manufacturer, which currently has 20 games titles available, also faces stiff opposition from consumer electronics firms Nintendo and Sony, with the latter planning to introduce a multimedia Playstation gaming handset in the near future.

"We are coming up with Playstation portable and new devices that will incorporate PDA functionality," a Sony spokesperson told vnunet.com.

Nokia introduced its cut-down €49.99 N-Gage QD game deck in May this year in an attempt to bolster sales.