Global gaming egiant Razer, which is worth an estimated $2 billion, has just announced a surplus of $500 million. Known for its sleek hardware, the company also specializes in cloud computer gaming, fintech services, payments, and software. Despite the devastating effects of the coronavirus on other industries, Razer has had a record-setting year.
Razer CEO Min-Liang Tan, who spoke exclusively to Yahoo Finance UK, says that its users grew from 80 million to 100 million in the past year. For the six months ending June 2020, the company reported revenue of $447.5 million, which represents 25.3% year-on-year growth. “This is particularly inspiring in spite of the hugely inflated logistics costs (since the pandemic) and we have beaten all expectations and turned profitable with $3.2m,” Tan says.
Given the company’s windfall, Tan says that Razer will continue to expand its footprint in the gaming arena. In the past month, the company has released “the new triple threat in esports” — the Razer BlackShark V2 — and the Razer Huntsman Mini 60% keyboard for gaming and e-sports.
This year, Razer also plans to introduce new categories in hardware and new launches. Tan says the company will continue to invest in fintech as well as Razer Gold, the unified virtual credits for gamers around the world, which can be used in over 2,500 games and entertainment content to buy games and in-game items. The company says that Razer Gold recorded a 125.9% year-on-year increase in total payment volume “driven primarily by the increase in the number of transactions.”
In addition, the company will invest in research and development and explore new ways to engage customers “in the absence of live events.” Tan doesn’t believe the surge in gaming during the coronavirus lockdown was just a blip on the radar but the start of a trend as a whole new generation of players around the world embrace gaming.
The company has detected an increase in gaming activity in the US and Europe as well as emerging markets, and although Razer is not focused on content or streaming services, they will continue to partner with companies like Tencent and Ubisoft to ensure that gamers have the most seamless and immersive experience possible.
Source: Yahoo Finance