Logitech LOGI is focused on boosting its gaming business. The company expects the Gaming business to offer multiple scope for growth in the future.
Notably, the gradual shift in consumer preference from mobile gaming to a more professional gaming experience is a major positive for the company.
Per Transparency Market Research, the PC peripherals industry is expected to hit $627.29 billion by 2026. Moreover, launch of advanced gaming devices and growing popularity of e-sports leagues are expected to boost the industry.
The company is leaving no stone unturned to tap the growing market opportunities, which makes us optimistic.
Forging Ahead in the Gaming Market
Logitech recently launched the Logitech G PRO X Mechanical Gaming Keyboard. The new keyboard has two variants priced at $149.99 and $129.99, and is expected to hit the shelves by the end of this month.
Notably, the new keyboard features multiple switch types like Clicky, Linear and Tactile, which can also be purchased in 92 packs of replacements at $49.99 on Logitech G’s website. The tenkeyless switches are a perfect fit for esports enthusiasts.
The new keyboard is built upon the Logitech G PRO Gaming Keyboard’s space-saving tenkeyless design, which makes it tournament travel friendly. Additionally, the presence of a detachable Micro-USB connector protects the cable’s connection point from possible breakage.
Further, last month, it introduced two new high-performance gaming keyboards — the Logitech G915 LIGHTSPEED Wireless Mechanical Gaming Keyboard and the Logitech G815 LIGHTSYNC RGB Mechanical Gaming Keyboard. Both are based on the LIGHTSPEED wireless technology.
The company also launched the Logitech G604 LIGHTSPEED Wireless Gaming Mouse, designed especially for gamers, recently. The new mouse is expected to hit the shelves in fall 2019. Reportedly, Logitech's gaming mouse business, which got a boost from the launch of a wireless version of the company's G502 gaming mouse in May this year, is gaining market share.
The company is also pursuing strategic acquisitions to provide impetus to its gaming portfolio. Notably, in September, Logitech entered into an agreement to acquire San Francisco, CA-based software provider Streamlabs.
Moreover, the acquisition of ASTRO Gaming in 2017 was a strategic move on the company’s part to make headway in the console market, as it has historically targeted PCs, tablets and phones. The ASTRO Gaming brand is helping Logitech carve a deeper niche in the gaming peripheral market
Furthermore, the revamped version of Logitech's Blue Microphones unit’s G Pro headset for esports players is also doing well.
Competition Remains an Overhang
The market where Logitech operates is highly competitive and characterized by constant new product introductions, rapidly changing technology, evolving customer demands and aggressive promotional and pricing practices.
In the Gaming products market, Logitech faces significant competition from Turtle Beach Corporation HEAR, which has achieved the distinction of being the leading player in the industry by revenues for the past nine consecutive years.
Moreover, competition from Dell DELL is also a concern. Further, Alphabet’s GOOGL Google is reportedly ser to launch Stadia, a new video game streaming platform, in November this year.
However, with a strong portfolio of gaming equipment, Logitech seems to be well poised to take on the competition and maintain its stronghold in the market.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Turtle Beach Corporation (HEAR) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Logitech International S.A. (LOGI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research