Gaming stocks, morning of October 27: Logitech grows, but chip supply weighs on the holidays

Logitech’s gear keeps selling, but chip supply still limits what the company can ship to stores. Its October 27 results showed growth, including in gaming, alongside an estimate that a supplier disruption will cost tens of millions of dollars in sales during the holiday quarter.

Logitech: gaming grows while the supplier recovers

According to Logitech’s results announcement, the company (Nasdaq: LOGI; SIX: LOGN) generated about $1.22 billion in sales in its fiscal second quarter of 2027, ended September 30. That was up 3% in US dollars, or 2% excluding currency changes, from a year earlier. GAAP operating income rose 5% to about $201 million.

Gaming contributed about $349 million, up 8% in US dollars. It was also Logitech’s 11th consecutive quarter of year-over-year total sales growth.

The constraint is at one semiconductor supplier’s factory. Logitech says the facility closed at the end of June following a serious incident and reopened in September. Its output remains below Logitech’s requirements; the company expects full production to resume by the end of the calendar year.

The disruption is expected to reduce fiscal third-quarter sales by approximately $70 million to $80 million. Logitech forecasts revenue of $1.36 billion to $1.43 billion, with constant-currency sales ranging from a 5% decline to flat year over year. It expects the disruption’s impact to be largely resolved by the fourth quarter. These are forecasts, rather than results already delivered.

It is good to see gaming grow, but the new gear’s real test will happen in our games.

From the bench: Nexon

This time we are looking at Nexon (3659, Tokyo’s Prime Market), the company behind MapleStory and Dungeon&Fighter and the owner of Embark, developer of ARC Raiders and THE FINALS. Its portfolio connects established online games with newer action titles.

In its August announcement, Nexon said ARC Raiders had passed 16.3 million cumulative sales during the second quarter. That is a historical figure through June, rather than an updated October count. The company attributed results above its own outlook to MapleStory’s strength and ARC Raiders’ continuing contribution.

The next update is approaching: according to its announcements calendar, third-quarter results arrive on Tuesday, November 10.

More from the market

Today, Wednesday, October 28, Microsoft releases its fiscal first-quarter 2027 results after US trading closes. According to its official announcement, the earnings webcast begins at 21:30 UTC. That will bring another business update from Xbox’s parent company; the results had not been published when this column was written.

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