Long time PC accessories maker, Logitech announced that it would no longer make video game console controllers.
Digital Trends reports that the announcement was made during conference call by the company to report its earnings for the holiday quarter that ended in December. At the conference, Logitech CEO Bracken P. Darrell said that is getting out of certain markets, starting with game console accessories in order to slow the company's financial decline.
"We have identified a number of product categories that no longer fit with our current strategic direction," said Darrell, "As a result, we have initiated the process to divest our remote controls and digital video security categories, and we plan to discontinue other non-strategic products such as speaker docks and console gaming peripherals, by the end of calendar year 2013."
Logitech sales dropped 14 percent in 2012 to just $615 million in year-over-year sales. Digital Trends notes that this drop occurred due to the ongoing contraction of the PC market and the average person purchasing more gadgets for smartphones and tablets rather than on new laptops and desktops.
In the address, Darrell also addressed the declining computer market and explained Logitech's plans going forward.
"As we articulated when we started the third quarter, continued weakness in the global PC market was the primary factor in our disappointing Q3 results," said Darrell. "These results are unacceptable and we are taking decisive action as an outcome of my strategic review. I was pleased with the continued strong demand for our Ultrathin Keyboard Cover in Q3. We plan to expand our presence in the growing tablet accessories category with the launch of a number of exciting new products later this quarter.
Digital Trends explains in the article that Logitech's move to create video game controllers was also met by the declining video game industry that fell 22 percent in 2012, according to NPD group's report from earlier this month.
Have you purchased one of Logitech's gaming controllers? Was the controller on par with the system's official one? Let us know what you think in the comment section below...
