Razer’s CEO, Min-Liang Tan recently revealed that the company sells every product at a loss in order to grow its brand and adoption among gamers.
Tan was replying to a question fielded by VG247 as to how the sales of left-hand versions of Razer’s DeathAdder and Naga were going.
“Terribly. Commercially, it’s one of the worst decisions we’ve ever made. But it’s one of those things where we just do it. We’re not run like a real company, I know. It’s insane, but every single product we ship, we’re shipping at a loss. But, life is short. And it’s funny to see someone using a left-handed mouse.”
Tan says that the company’s loss-making products allows them to be more successful in the long term and offer gamers the best hardware possible. Tan said that for every one product that goes to market there are four or more waiting in line to be released.
“It’s one of those things, a Razer design initiative. We take a million years to get anything out. If you put things in perspective, most other companies probably launch more products in a single year than we have done in the past. We launch very few products – but products that everybody wants. If there are 50
, you might only want one of them, or three of them, but because we’re just so lazer-focused on gamers themselves, every single thing becomes a gamer’s requirement,” he adds.Tan has said in the past that it’s not only Razer’s design initiatives that are crucial to its success, but also the employees in the company. In the VG247 interview he also acknowledges the efforts of his company’s investors.
“Our investors are genuine product people. I’m thankful for it. I cannot imagine if somebody’s just interested in like, a bottom line or a profit. We’ve been able to make decisions that make absolutely no commercial sense whatsoever,” said Tan.
Razer later released a press release that stated while the company doesn’t focus on profits with its new products, they don’t make a loss on all products sold during a device’s lifetime.
Source: VG247
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I have a Razor Lycosa. The plastic feels cheap and flimsy, not to mention the fact that the product wore out quite fast. My Razor Lycosa feels like it just fell out of a chinese lucky packet from Shoprite, as my space bar broke after a year and most of the letters on the keys are not visible anymore, due to the wear and tear of the low quality “rubber coating” that they put on each key. I also look after my stuff and i didn’t expect something that costs 1k to crumble apart so quickly. I know a few people that are much happier with their mice products. As for the keyboards, never again.