Nokia Developer Summit 2009's rules of the game

In conjunction with my other life as a secret agent and jet-setting international playboy, I spent this week in Monaco--while matters of national security demand that I keep secret the details of my mission, I somehow found time between counter-espionage efforts and games of high-stakes baccarat to attend the Nokia Developer Summit 2009 event. Although the conference did not include the formal launch of the handset giant's Ovi Store mobile application storefront, it did shine considerable new light on Nokia's plans for the Ovi platform, its evolving relationship with the mobile developer community and its transformation from device manufacturer to solutions provider. Here are some highlights.

Mobile games will play a central role in Ovi's future. On Tuesday, Nokia announced that all mobile games will become available via the Ovi Store, set to open sometime in May, but titles will also remain available through existing channels like the N-Gage platform. According to a consumer study cited by Nokia Games Publishing director Mark Ollila during a keynote speech Wednesday, 80 percent of Nokia device owners across all international markets play mobile games, and while 46 percent of them said they play when there's nothing else to do, 37 percent said mobile games are a great way of passing time, and 27 percent say playing games on their handset is fun. In addition, 12 percent of gamers play once a day, and 10 percent play several times a day.

According to Ollila, the challenge facing Ovi Store is persuading non-gamers to rethink their attitude. He suggests the solution lies in offering free games and trial games as a means to pique consumer interest in more sophisticated titles. "Millions of people enjoy games," he said. "But we need to move them to premium transactions." 

Ovi Store's concept of "social location"--i.e., a more personalized and relevant user experience determined by locale, friend recommendations and related tools--is critical to Nokia's mobile gaming plans. Across Nokia's global consumer segment, puzzle games proved most popular, earning high marks from 56 percent of consumers, trailed by racing games (52 percent) and action/adventure games and strategy titles (both 45 percent). But Ollila said the international averages are skewed by the extraordinary popularity of certain kinds of games in specific geographic regions--moreover, while gamers in the Western world are bigger fans of casual titles, players in Eastern regions are "more hardcore." All of which means Ovi Store's emphasis on user- and location-specific recommendations will become a valuable tool in promoting games to targeted audiences.  

 Nokia is looking for partners and acquisitions. The central theme of Nokia Developer Summit 2009 was Nokia's promise to foster a deeper, richer relationship with the mobile community: "We're going to expose and open Ovi through APIs in a completely new manner," Nokia executive vice president of services Tero Ojanperä said on Tuesday. "Look at Ovi as a platform you can develop applications on top of--to enhance the experience, and to build value."

Developers who substantially improve the Ovi experience could become Nokia partners, or even acquisition targets. According to Ed Simnett, director of Nokia's Strategy and Business Development unit, prime acquisition possibilities match four criteria: 1.) They must fit into Nokia's committed roadmap; 2.) They must be profitable; 3.) They must come with superior management teams; and 4.) They must fit with the Nokia culture. "Acquisitions are really about people," Simnett said.

Nokia Growth Partners is looking to invest. A $250 million venture fund targeting growth-stage companies, Nokia Growth Partners works closely with Nokia, its sole limited partner, to identify startups and services that complement the handset maker's overall vision. "We look at ideas and technology--it's how you execute that's important," said Nokia Growth Partners partner Bo Ilsoe.

Ilsoe acknowledged the impact of the worldwide recession on mobile investment: "It's no secret we're in the middle of a nuclear winter for venture finance," he said. "It's very slow on the IPO side. A lot of investors are hunkering down--they don't want to make new investments, they just want to manage their existing portfolio." But Nokia Growth Partners is nevertheless on the lookout for acquisitions with services that tie in well with the Ovi platform, in particular local search and mobile social networking applications--in addition, its eye is on firms pioneering new markets like financial services, education apps and green concepts.

Ilsoe also echoed Simnett's earlier sentiments, declaring "This is a people business. We look at a company's team, their technology, the overall market and our exit strategy." He closed with arguably the most salient advice of the day: "Remember the golden rule--the guy with the gold sets the rules." -Jason