MILPITAS, Calif. - Corsair (NASDAQ:CRSR), a well-known developer and manufacturer of gaming peripherals and technology, has entered into an exclusive multi-year partnership with the Call of Duty franchise. The collaboration, announced today, will span across several Call of Duty titles, starting with the upcoming release of Call of Duty: Black Ops 6 on October 25.
The partnership will integrate Corsair's family of brands, including Drop, Elgato, ORIGIN PC, and SCUF Gaming, with the Call of Duty series. This alliance aims to create a comprehensive gaming experience by providing gamers with a range of products tailored to the franchise. The specifics regarding the products and categories will be disclosed gradually.
Andy Paul, Founder and CEO of Corsair, expressed enthusiasm about the collaboration, highlighting the synergy between the two brands in delivering a premium experience for players on various platforms such as PC, console, and mobile. This sentiment was echoed by Will Gahagan, Senior Director of Partnerships at Activision, who emphasized the opportunity to enhance the gaming experience for Call of Duty players with Corsair's ecosystem of products.
The unveiling of the partnership will take place at TwitchCon in San Diego, running from today through September 22, 2024. Attendees will have the chance to preview the officially licensed Corsair products and participate in activities, including dedicated streaming sessions and product giveaways.
The partnership between Corsair and the Call of Duty franchise marks a significant step in providing gamers with an immersive and integrated gaming setup. The announcement is based on a press release statement from Corsair.
In other recent news, Corsair Gaming, a global developer and manufacturer of high-performance gear for gamers and content creators, has announced its definitive agreement to acquire the Fanatec Sim Racing product line from Endor AG. This strategic acquisition marks a significant step for Corsair Gaming as it continues to diversify its product range and invest in high-growth areas of the gaming industry. The acquisition aligns with Corsair's strategy to expand its portfolio in the gaming peripherals market, providing an immediate foothold in the rapidly growing sim racing sector.
Furthermore, Corsair reported a dip in net revenue for the second quarter of 2024, dropping to $261.3 million from $325.4 million in the same quarter last year. Despite this, the company's gamer and creator peripheral segment experienced a 20% year-over-year growth, attributed to successful product launches. In addition to this, Corsair announced cost-saving measures, including a reduction of approximately 100 employees and cuts in external expenses.
The company revised its full-year 2024 outlook, expecting revenue between $1.25 billion and $1.35 billion, and adjusted EBITDA between $60 million and $75 million. Despite facing a challenging market landscape, Corsair remains confident in its long-term prospects, anticipating growth in the gamer and creator peripheral segment, and planning to acquire smaller companies in the peripheral and enthusiast space. These are some of the recent developments in Corsair Gaming.
InvestingPro Insights
As Corsair (NASDAQ:CRSR) embarks on this strategic partnership with the Call of Duty franchise, investors are keeping an eye on the company's financial health and market performance. According to real-time data from InvestingPro, Corsair's market capitalization stands at $680.08 million, reflecting the scale of the company within the tech and gaming peripheral industry. Despite a challenging market environment, with a reported revenue decline of 0.78% over the last twelve months as of Q2 2024, the company is navigating through with a gross profit margin of 24.78%, underscoring its ability to maintain profitability on its products.
Nevertheless, an InvestingPro Tip highlights that analysts are anticipating a sales decline in the current year, which could impact the company's financials. This is particularly relevant as Corsair seeks to leverage its new partnership to potentially revitalize sales and market positioning. Moreover, another InvestingPro Tip points out that the stock has experienced significant volatility, with a 57.1% drop in the one-year price total return as of Q2 2024. The volatility of Corsair's stock price is a factor for investors to consider, especially in the context of the company's latest business developments.
For those interested in a deeper dive into Corsair's financial outlook, InvestingPro provides a wealth of additional tips – currently, 11 more are listed on the InvestingPro platform at https://www.investing.com/pro/CRSR. These insights could offer valuable perspectives for investors considering Corsair's stock in light of the company's new partnership with Call of Duty and its potential to shape the gaming experience and Corsair's market trajectory.
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