ZURICH (Reuters) – Logitech International <LOGN.S> said its gaming business had not run out of steam despite seeing its sales of its peripherals for gamers increasing by only 2% during its latest quarter, Chief Executive Bracken Darrell said on Tuesday.
The U.S.-Swiss company was now lapping tough comparisons with last year when the success of the Fortnite game led to a surge in sales of gaming headphones by fans of the multi-player shoot-em up, Darrell told Reuters.
“What you are seeing is the famous Fortnite effect from last year, that was huge,” Darrell said. “If you take the headset business out, where the business was affected the most, we continue to grow double digits,” Darrell said, referring to keyboards and mice Logitech also makes for gamers.
The tough comparisons would start to fade away at the start of next year, Darrell said, while the success of Logitech’s gaming business did not rely on single games like Fortnite.
“There are so many games that are popular, we are a little less dependent on a single one,” he said. “Interest in gaming continues to grow, it’s a truly global phenomenon.”
The executive was speaking after Logitech posted a 4.5% increase in operating income during its latest quarter, driven by a strong uptake of its video conferencing products and confirmed its full year guidance.
Video collaboration was a long term growth story, Darrell said, with companies using it to save costs and the environmental impact of flying staff to meetings.
(Reporting by John Revill)