What if the idea of Fanatec being taken over by industrial giant Corsair was nothing new? That’s what we’re wondering when we learn of the imminent launch of the next Corsair Racing range. What will it offer? Who is the target audience? Let’s find out..
Should we be afraid of what comes next?
The question is worth asking. Up to now, Corsair has always kept its brands as they were after their takeover. Perhaps the best example is the Elgato brand, which has kept its own entity and is doing extremely well today. So on the face of it, you might say, there’s nothing to worry about for Fanatec.
Then an interview given by Andy Paul, Corsair’s CEO, for NASDAQ upset the schedule a little. A new range is on the way, and its arrival is scheduled for one month from now, at the COMPUTEX 2024 event. Quite a surprise, isn’t it?
As a result, we’re expecting our next mobile game controller and our next range of SIM racing products to be two remarkable launches for us. Corsair Racing is scheduled to launch at COMPUTEX in June 2024.
We have developed a global experience designed to deliver a fully immersive SIM racing experience. This is a high-growth category, especially as Formula 1 continues to gain interest in the United States.
Corsair will have a unique advantage in this market due to our ability to produce all relevant components for a SIM racing setup combining our new racing components with our gaming PCs, curved monitors and PC peripherals.
ANDY Paul, CEO CORSAIR – NASDAQ
Developing a range is no simple matter. It requires market research, product feasibility, not to mention manufacturing and distribution. These are time-consuming stages, requiring the mobilization of considerable human resources, which can inevitably prove costly. This is where the acquisition of the Fanatec brand comes into its own. A quality, innovative brand with licenses such as FORMULA 1, which ultimately represents a considerable time-saver for Corsair. All this was carefully prepared well before the official takeover. There’s no doubt about it.
Wasthe takeover a poker game?
If we remember correctly, the first signs of difficulties for the Fanatec brand are not new. And little by little, it was becoming quite a burden to carry. Not to mention the setbacks in after-sales service, crucial for an international brand.
But despite it all, beyond the fact that Fanatec managed to survive, the extension of the FORMULA 1 operating license was a lifeline. It was almost unreal, given that Fanatec had its banker on its back.
Looking back, it was an excellent deal, especially for Corsair. There’s no doubt that a billion-dollar company would have had to put much more money on the table to secure the F1 rights.
Corsair is certainly paying a hefty sum to pay off Fanatec’s debts, but considering that they’re getting back franchises such as F1, WRC and the all-important GT WORLD CHALLENGE visibility, it’s a pittance compared to the visibility they’re gaining.
We carefully evaluate opportunities as part of the regular course of business, and will seek to pursue those that fit with our long-term growth plans from a product, brand and valuation point of view.
Looking forward to the 2024 break-even point, we did not expect growth in the Gaming Components and Systems segment until the launch of the next family of GPU cards, which is expected to be in late 2024 or early 2025. For the Gamer and Creator Peripherals segment, we expect significant growth, especially for the new products we’ve recently launched and even more we’re about to launch.
In addition, as we mentioned in our last update, we will be entering two new product categories in 2024, SIM races and mobile controllers. We expect the global gaming market to now return to historic growth levels as the effects of the pandemic fade into history.
ANDY Paul, CEO CORSAIR – NASDAQ
So, is this the end of Fanatec?
Absolutely not, and it would be commercial suicide in my view to abandon such a brand. On the contrary, we’re certainly going to see a reorientation towards the top end of the market. A technological showcase it richly deserves.
There’s no doubt that Corsair is keen to exploit licenses such as F1. And given its growing visibility, I can see the brand taking over entry-level and mid-range products, thus reaching a wide audience new to sim racing. Esports will undoubtedly be the first priority.
At the same time, the Fanatec brand will be retained for a hardcore, pure simulation audience. Top-of-the-range products, such as the BMW M4 GT3 steering wheel, that come ever closer to reality. Additional financial resources from parent company Corsair to guarantee peace of mind over time. Let’s not forget that, in its early days, FANATEC was, compared to its competitors at the time, a top-of-the-range brand.
According to some sources, Thomas Jackermeier retains a position in product development. Knowing his passion for sim racing and his achievements to date, we’re reassured. Some malicious tongues saw him put back in the closet, but on closer analysis, he not only provides Fanatec with an extraordinary lifeline, but also takes sim racing to a new level.
