Racing peripheral manufacturer Fanatec has indicated that it’s preparing to enter a new market segment, with a new product range for PlayStation 5 coming later this year.
The information comes via a financial report from parent company Endor. This report covers earnings from 2020, during which Endor experienced record consolidated sales of €90m, and projections for the year ahead.
In its 2021 forecast, Endor states it should break through the €100m mark in consolidated sales for the first time. There’s several factors guiding that projection, including the increased exposure of Fanatec’s brand through its sponsorship of the GT World Challenge.
However there’s also a rather unexpected angle. Fanatec, which is known for its premium products and mix-and-match device ecosystem, is planning to expand to cover less expensive peripherals, too. These products, which will be officially licensed for PlayStation 5, are set to provide a new entry level price point to the Fanatec range.
Andras Semsey, CFO of Endor AG, comments:
“By placing new products in the lower price range of the Fanatec portfolio, we will be able to significantly expand our market share worldwide. In line with our top-down brand strategy, we are also consciously accepting slightly lower gross profit margins for this expansion. However, due to the overall strong growth, profits will continue to rise.
This could mean that Fanatec will start to offer products to compete directly with Thrustmaster and Logitech offerings. These brands have essentially cornered the market for entry-level, full-feature wheels — you’d typically need to spend almost twice as much to get a Fanatec system, though they’re generally regarded as higher quality devices, and come as separate components rather than an all-in-one controller.
If Fanatec can bring products to market that are at or near these entry-level devices, it could introduce far more consumers to the brand, who are then more likely to upgrade within than look elsewhere.
We’ll get to find out what Fanatec has planned later this year, with the new products scheduled to hit the market in 2021.