The N-Gage QD was released six months after the first N-Gage, in the spring of 2004. The physical design was amended to make it smaller and rounder, and also corrected the previous design flaw in which the battery cover had to be removed in order to insert a game card. In this new design, the MMC was slotted into the bottom of the device. The speaker and microphone were also moved from the side of the unit to the face to make holding the phone during calls more comfortable.
However, in redesigning the unit, Nokia also removed a number of functions, such as MP3 playback, FM radio reception and USB connectivity in order to reduce size and costs. Although the QD did not support MP3 internally, it could still play MP3s in 16 kHz mono with third-party software. In order to transfer files, users now had to use either Bluetooth or a separate MMC card reader, rather than using the N-Gage as a removable USB drive.
It was noted that the rubber fitting side that closed the gap between the device top and bottom casing could be loosened (especially if dropped), making the device vulnerable to water or particles entering the internals. However, replacement fittings were available at Nokia's service centres, and were also available in a variety of colours through various third-party sellers.
The N-Gage QD no longer supported the three GSM frequency bands 900/1800/1900 MHz (i.e. tri-band functionality), and instead came in two dual-band versions: one for the European and Asian markets (900/1800 MHz) and one for the North American market (900/1900 MHz). The rest of the hardware specifications for the N-Gage QD were otherwise the same as the original N-Gage, with the same horizontal screen layout, button configuration, and so on.
The device retailed at a lower price than the original unit, usually subsidised by the inclusion of a pre-paid cell phone service contract.
In September 2005, the N-Gage QD Silver Edition was released in the European, Middle Eastern and African markets in order to extend the life of the N-Gage product range whilst new N-Gage devices were developed. Apart from cosmetic changes, there was no difference in the N-Gage QD Silver Edition to the standard N-Gage QD.