Razer, the leading global lifestyle brand for gamers, intends to acquire console accessories brand Controller Gear. The acquisition of Controller Gear, which specializes in creating licensed peripherals and merchandise for popular console brands including Xbox, PlayStation and Nintendo, will strengthen Razer’s position in the fast-growing premium console market as the entire gaming market is forecast to cross its first US $200 billion year in 2023.
The console gaming market is forecast to grow 21.0% year-on-year in 2020 to US $51.2 billion according to Newzoo, more than double the growth projection made before the COVID-19 pandemic. This considerable growth is a result of three factors: strong demand for the latest gen consoles, pandemic fueled demand for all consoles across generations, as well as the highly accessible, plug-and-play nature of console gaming being easy to pick up. In recognition of the high growth potential of the console gaming market, Razer has continually innovated in this category to introduce premium console peripherals, including the popular Razer Wolverine controller and Razer Kaira headset lineups. The acquisition is a testament to Razer’s commitment to delivering high performance peripherals to all console gamers around the world.
Based in Temecula, California, Controller Gear has seen a period of active growth since its founding in 2014. The company has expanded its product offerings in recent years to also include licensed wireless controllers, charging stands, cases, skins, as well as lifestyle apparel such as bags and accessories. The brand is renowned for its creative, licensed Xbox controller and charging stand sets showcasing the latest game titles and pop culture references.
“At Razer, being gamers ourselves, we know how important it is to create best-in-class products for a unique and personalized gaming experience,” said John Moore, Head of Sales and Marketing, Console Peripherals at Razer. “Controller Gear brings leading expertise in this field with their breadth of product offerings, and strong distribution and retailer relationships. Under the Razer umbrella, the products will be made available to new audiences across the globe.”
“Razer’s vast experience in producing award-winning hardware, combined with its global infrastructure, will give Controller Gear the necessary tools and channels to bring the excellent licensed products we are known for to gamers around the world,” said Jon Buller, President and Co-Founder of Controller Gear. “We are thrilled to work towards creating exciting, top-of-the-line licensed products as part of the Razer family.”
“Despite global market uncertainty caused by the COVID-19 pandemic, the gaming industry has continued to soar to new heights with console gaming demonstrating strong growth potential as a core gaming segment,” said Limeng Lee, Chief Strategy Officer for Razer Inc and Chief Executive Officer for Razer Fintech. “The acquisition will further solidify Razer’s dominant position in serving 3 billion gamers worldwide through our ecosystem of hardware, software and services. We have an incredibly robust balance sheet with over US$500 million in cash and will continue to identify phenomenal companies to enrich our gamer-centric ecosystem.”
Following the acquisition by Razer, Co-founder and President Jon Buller will join Razer as Director of Product Development along with the current employees of Controller Gear.