Handset maker Nokia is targeting developers with a new Mobile Games Innovation Challenge that was launched worldwide yesterday.

The Espoo, Finland-based company's Nokia Publishing unit will offer the three most innovative games concepts pre-production contracts and cash prizes worth $110,000.

"We are looking for innovative ways for people to use mobile technology in games," said Kasey Farrar, Nokia communications manager.

"Mobile handsets are smart," he said. "They know where you are. They sense their surrounding in numerous ways. They even know what you are looking at through the camera lenses. We can't imagine what sort of games creative developers are able to create on these smart devices."

Developers can submit mobile gaming concepts to drive mobile gaming, based on the features and functionalities of devices compatible with Nokia's newly launched N-Gage platform (see story) as well as Java- and Symbian-based Series 40 or S60 Nokia models.

"This was not directly linked to the global N-Gage games service going live, but is another example of Nokia's willingness to tap into the creativity of existing Nokia users," Mr. Farrar said.

In addition to the pre-production contracts offered to the three winning game concepts, the first-prize winner will take home $63,000, the second half that amount and the third $16,000.

Gaming concepts can be submitted at http://developer.n-gage.com/innovation. Contestants can enter more than one mobile gaming concept through Aug. 20.

The winners will be chosen by an external panel of judges on the criteria of innovation, fun, feasibility of execution and market potential.

Nokia will announce the winners during a special awards ceremony Oct. 29-30 at the Nokia Games Summit in the Italian capital of Rome.

"Mobile gaming is very important for Nokia and we're trying to remedy the poor experience people have had in the past," Mr. Farrar said.

"Now N-Gage is live and millions of Nokia-device owners can find, try and buy made-for-mobile games directly from their mobile device," he said. "N-Gage is just one example of the three services that are live and a part of Nokia's transition into services and software through OVI."