If a gamer changes or upgrades to a different Nokia handset they have to purchase the games again if they want to continue playing.
The issue was uncovered by website All About N-Gage.
"It's a bad idea for everyone... the N-Gage platform, gamers and third party publishers," the site said.
Nokia said it had made the decision to prevent piracy and to ensure its "partners receive their rightful revenues from our platform".
Nokia relaunched its N-Gage mobile gaming platform last month.
About 30 games are available on a limited range of Nokia handsets, which are bought and downloaded direct to the phone.
It is the company's second attempt at making mobile gaming a success. In 2003 it released a dedicated handset for gaming, but the device never took off.
But the new platform has provoked anger amongst gamers.
Writing on the official N-Gage forums, one gamer said: "Changes need to be made soon, and sticking one's head in the sand will not change anybody's mind."
When gamers sign up for the service they have to agree to terms and conditions, part of which explains that games cannot be transferred between devices.
It states: "Content shall be... limited to one private installation on one N-Gage compatible Nokia device only."
But gamers have complained that the detail is buried in the terms and conditions and it is not clear enough at the point of purchase.
A statement from Nokia said: "Our policy is that the N-Gage activation codes only work on the device where they were first activated.
"As with any digital media there is a potential risk of piracy and this policy is one of the ways we are dealing with piracy and ensuring our partners receive their rightful revenues from our platform.
"If users need to repair their device, the activation codes will be reissued."
Reuters
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