After a $180 million loss last quarter, Logitech retools for mobile.
After printing a massive red line at the end of its latest financial report, Logitech is removing products that don’t fit its “current strategic direction”, according to president and CEO Bracken P. Darrel. While Logitech identified many underperforming areas, the practical import for gamers is that console peripherals are being culled in favor of mobile devices.
If there was an accessory for a console, Logitech likely made it. Their line included everything from wireless controllers to racing wheels to every form of plastic instrument imaginable. In addition to the console accessories, Logitech will also be cutting various other underperforming products like speaker docks and remote controls. The good news is that while the PC market is dropping, Logitech plans to keep making the keyboards and mice that you know and love.
Of course, there’s a little bit more to the story. Last year, Logitech acquired four video conferencing companies, which netted them a $211 million dollar non-cash goodwill impairment charge. This is a fancy way of saying that the new toys they bought weren’t nearly as cool when they got them home. Even so, Logitech has read the tea leaves and sees more room to grow making iPad cases then it does Xbox controllers.