Razer CEO Tan Min-Liang recently spoke to Josh Ye of the South China Morning Post. During the interview, he said he expects profits to continue to grow as consumers take to gaming amid the COVID-19 pandemic.
“We saw outsized growth for ourselves,” Tan said. “It was pretty unprecedented. And I think we still see consistent growth moving forward from here, but definitely, it was ahead of our own expectations.”
Razer posted a maiden net profit of US$800,000 on record revenues of $1.2 billion in 2020. The company also said it expects to continue seeing consistent growth moving forward.
The Profit‘s Take:
It’s not easy to build profitable hardware businesses, especially in a busy space like gaming. However, what Razer has accomplished is extremely impressive. The growth has been massive. Over a billion in revenue is impressive. While the profit margins are extremely thin right now, I believe they are playing the long game and investing in building a powerhouse brand – the Nike of esports. If Razer can become the de facto standard for mainstream gaming accessories, I can see profit margins improving significantly over the next few years.
(All information was provided by The South China Morning Post)