ASTRO Gaming, a brand of Logitech (LOGI - Free Report) , recently introduced the next generation of its A40 Tournament Ready (TR) gaming headset and MixAmp Pro TR technology.
The audio technology provided by ASTRO Gaming has been designed to specifically meet the requirements of professional gamers. Its suite of headsets are compatible with Sony’s (SNE - Free Report) Playstation 4, Microsoft’s (MSFT - Free Report) Xbox One, PC and Mac consoles.
The ASTRO A40 TR Headset was first launched more than a decade ago, much before the firm was acquired by Logitech in 2017, and has gained significant traction ever since. With the fourth generation product, the brand aims to enhance its audio system performance and improve user experience.
The ASTRO MixAmp Pro TR, the technology behind the ASTRO Audio experience, features Dolby Digital Surround Sound processing, delivering interference-free sound and voice communication to the A40 TR Headset.
How Logitech is Placed in the Gaming Market
In the third quarter of fiscal 2019, the Gaming business was a significant contributor to Logitech’s 6.4% year-over-year revenue growth.
Gaming revenues jumped 23% year over year to $213.7 million, supported by strong momentum across its latest products including advanced keyboards, headphones and mouse used for popular online games such as League of Legends and Fortnite.
The ASTRO Gaming brand is helping Logitech carve a deeper niche in the gaming peripheral market. This acquisition was a strategic move on the company’s part to make headway in the console market, as it has historically targeted PCs, tablets and phones.
During the same quarter, ASTRO Gaming delivered strong double-digit growth, despite very strong comparison from last year.
The company expects the Gaming business to offer multiple paths for growth in future. The ever rising popularity of eSports and adjacent market expansion such as ASTRO's new PlayStation 4 Controller is keeping Logitech optimistic.
Competition Remains an Overhang
The markets where Logitech operates is highly competitive and characterized by constant new product introductions, rapidly changing technology, evolving customer demands and aggressive promotional and pricing practices.
In the Gaming products market, Logitech faces significant competition from Turtle Beach Corporation (HEAR - Free Report) .
Turtle Beach has pepped up the gaming console industry by setting a unique record of selling more than 30 million gaming headsets since entering the market in 2005.
Per the 2019 Video Game Sale Statistics by NPD Group, Turtle Beach has been the market leader in gaming headsets by units for the past seven consecutive years, with more than 12 million more headsets sold life-to-date compared with its nearest competitor. The company has also achieved the distinction of being the leading player in the industry by revenues for the past nine consecutive years.
However, with ASTRO Gaming in its kitty, Logitech seems to be well poised to take on the competition and maintain its stronghold in the market.
Logitech currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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