Corsair announces plan to acquire troubled sim racing brand

PC component and peripherals business Corsair has announced plans to acquire Endor AG, the parent company of sim racing brand Fanatec. The move comes a month after Fanatec announced a new CEO amidst widespread condemnation from the sim racing community over botched product launches, shipping delays and customer service failings, which have soured the reputation of a company that produces otherwise well-regarded sim racing gear, from wheels and direct drive wheelbases to pedals and other accessories.

There's clear logic behind the move, as Corsair doesn't currently have a sim racing brand in their (extremely wide) ecosystem, unlike rivals Logitech who launched their first direct drive wheelbase last year and Turtle Beach who did the same earlier this year. Corsair is also extremely proficient when it comes to the logistics of actually producing and selling its products worldwide, something that Fanatec has struggled with historically and has come to a head over the past six months.

As well as Fanatec having only EU and US stores, leaving UK buyers to face significant import duties and long shipping times, the firm also faced controversy over its policy of charging up-front for orders which may not be fulfilled for months. Black Friday discounts in November 2023 in particular resulted in a huge amount of interest, with the Fanatec website toppling over for much of the day, but many customers of the sale reported not receiving their orders well into 2024 and support queries going unanswered.

The recent launch of the ClubSport DD+ wheelbase for PS5 was also not without controversy, with a vital Sony certification not being granted and the launch therefore being delayed significantly. It's possible that this was the final nail in the coffin for the company's independent operation, as Corsair's press release mentions that it will fund the company's "short-term cash needs" and "negotiate a restructuring of Endor's approximately €70 million of debt" - a not insignificant burden.

If the Endor AG acquisition does go ahead, my view is that Corsair's first priority ought to be shoring up the customer service side of the business, answering support messages and offering refunds if necessary to customers that haven't yet received their orders. Beyond this, it's easy to see other opportunities for Corsair to get their money's worth just by increasing production and ensuring broader retail availability for what is already a complete (and generally high-quality) ecosystem of sim racing gear. Hopefully the "continued product portfolio expansion" referenced in the Corsair press release comes after these two points are covered off.

Of course, it is also a little disappointing to see another independent company swallowed up by a giant of the PC space - even this one is one of the more logical acquisitions we've seen as late. Given the continuing consolidation of the PC industry and rising interest in sim racing in particular, it wouldn't be surprising to see similar interest from the likes of Razer, Asus or Dell, for example, at some point in the future.