Corsair, a leading manufacturer of gaming components and peripherals, has announced its second-quarter 2024 financial report, revealing a challenging period for the company. Net revenue for the quarter declined by over $50 million compared to the same period in the previous year.
During the earnings call with investors, Corsair attributed this revenue drop to a slowing demand for high-end gaming components. The company cited a lengthening of refresh cycles, meaning gamers are taking longer to upgrade their hardware. This trend can be attributed to the lack of new games demanding significant hardware upgrades.
Corsair CEO and co-founder Andy Paul stated that refresh cycles for high-end components were previously on a 3 to 5-year cadence, but have now shifted to a 4 to 6-year cadence. This slowdown in upgrades directly impacts Corsair’s sales, as gamers are holding onto their existing components for longer periods.
The company also acknowledged the lingering effects of the COVID-19 surge, which saw a surge in demand for home entertainment products. As the world returns to pre-pandemic normalcy, Corsair is experiencing a normalization of purchasing patterns.
Overall, Corsair’s second-quarter results highlight the challenges facing the gaming component market, with slowing demand and changing consumer behavior impacting the company’s performance.
