In recent months, Logitech's new gaming head, Robin Piispanen, has expressed skepticism about the future of handheld gaming devices. Despite his appreciation for the concept, he has indicated that the company is not rushing to create a sequel to the G Cloud handheld, which was met with a lukewarm reception. Piispanen's uncertainty stems from the underwhelming performance of the G Cloud, which he believes did not align with consumer expectations. He noted that a significant portion of users who purchased the device ended up not using it, highlighting a disconnect between the product and market demand.
The challenges faced by Logitech are compounded by the broader issues within the cloud gaming industry. Piispanen pointed out that major cloud gaming providers have struggled to develop the necessary infrastructure quickly enough, leading to stagnation in the market. He referenced comments from a top PlayStation executive, who noted that cloud gaming is expensive to operate, which further complicates the viability of handheld devices reliant on cloud technology. This situation has made Piispanen cautious about entering the handheld market, as he believes it requires a large scale to be successful.
Logitech's previous attempt with the G Cloud has left the company questioning whether it should pursue a standalone handheld device. Piispanen acknowledged that many successful handheld companies, like Nintendo, own their content, which gives them a competitive edge. He expressed concern about the slim margins in the handheld market and the challenges of competing with established players like Asus. Despite these challenges, Piispanen mentioned that Logitech is still investing in the future of cloud gaming and is in discussions with major industry players like Microsoft and Tencent to explore potential collaborations.
Looking ahead, Piispanen is open to the possibility of a future where cloud infrastructure costs decrease significantly, which could change the landscape for handheld gaming. However, he could not provide a timeline for when such changes might occur. The overall sentiment within Logitech reflects a cautious approach to the handheld gaming market, as the company weighs its options and considers the lessons learned from its previous experiences.
