Logitech purchased Saitek, a company known for delivering niche products for simulation-based games. And now Logitech expands its product line once again.
It was exactly back in 2007 when Saitek was bought by Mad Catz, hardware producer for games for approximately $30 million. However, due to market loss, they are now in the position of being obligated to sell it to Logitech.
During the recent fiscal year, Mad Catz reported almost $11 million in loss. This massive flop leads the CEO of the company to fire almost a third of its staff at the beginning of this year. The fortune of the company started to crumble when Thomas Brown, Whitney Peterson and Darren Richardson resigned from their positions as chairman, senior VP of business affairs and CEO respectively.
Their goal was to increase the company’s efficiency while lowering the operating costs. The change was part of the new restructuring plan which was supposed to cut 37% of employees.
On the other hand, the acquisition of Saitek will help Logitech launch itself in the gaming controller industry. Logitech already has a set of gaming controls on the market. By adding some of Saitek’s controllers such as a joystick, a simulation game with pedals and wheels – the company also opens up a new era and a new area on the market for the company.
Even though Logitech declared that the Saitek buyout won’t affect its quarterly or full-year financial results, there is no doubt about the fact that it will consolidate the company’s position in the gaming domain. Logitech’s gaming venture has evolved as one of its strongest growth drivers.
Madcatz didn’t have much to say about the sale. Logitech, on the other hand, names the transaction a ‘tuck-in acquisition’ intended to pluck Saitek’s portfolio. The company hopes to upgrade its “G” lineup of gaming merchandise with Saitek’s equipment and mentions some of their products as good followers for the incoming improvements.
While simulation games have been very popular for a long time, now they will be acceding a whole new sphere of existence grace to virtual reality. We’ll probably see such niche peripherals become more widespread as many gamers want more realistic controllers to aggregate the already immersive VR gameplay and pick up VR systems.
Do you use any Logitech products now? Are you happy with your choice? Let us know!
Image source Wikimedia
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