It's my turn to make fun of the N-Gage
You can't point to a single thing about the N-Gage and say, "This is why it failed." There are so many things wrong with it fixing just one of them won't help. For example, this Halloween discount promotion is not going to sell very many more N-Gage's: although it almost fixes the price problem, there are too many other problems to count.
Discounting is a loser move. It will sell a few more units in the short term, but if they return to their original price they won't sell any. Everybody will wait for it to go on sale again.
And it doesn't fix the price problem: one of Jack Trout's rules of pricing - it has to be in the same ballpark. $200 for an N-Gage when you can spend $75 on a GBA is still not in the ballpark.
But even if they sold the N-Gage for $100 they'd still be fucked by these two things:
1) It
does not have a killer app. As you can see, there is only one game for the N-Gage that's even slightly above average. (70 approximately is the mean on Gamerankings.)
2) It's a swiss army knife. People do not want swiss army knives. They want specialty products. They want a game company to make their game machine. They want a cell phone company to make their cell phone. Convergence is a myth. It didn't happen with stereos and it won't happen with PDAs. (Note: right now, you're probably thinking "But I
do want a toaster in my car. That would be very convenient." You say that, but you don't want a crappy toaster in a crappy car, and when the toaster car comes out, no matter how good its toaster and how good its engine you're still going to think that it's either a crappy toaster or a crappy car because how good could a toaster made by a car company or a car made by a toaster company possibly be?) Now, if you built a GBA into your phone...
then maybe I'd buy it.