Nokia cuts spending on software and services

Nokia has revealed in its annual report that it's cutting its spending on software and services in 2009 by 21 per cent.

The category includes N-Gage and games, but also music, maps, media and messaging. But before N-Gage developers run for the lifeboats, the company's investment is still considerable.

Last year, Nokia says its capital expenditures on software and services were around 889 million Euros ($1.1 billion), but that this year it will cut that to around 700 million Euros ($878 million).

"Currently, we are working to grow our customer base and build customer loyalty in each of the five focus areas," says Nokia in the report.

It remains to be seen how the spending cuts affect N-Gage, although with the platform having launched fully last year, it doesn't require the same scale of investment in 2009.

You can read the full annual report here.