Lenovo has joined forces with Razer, a world leader in gaming devices, to launch high-performance desktop hardware, the only PC sector still seeing significant growth in 2015.
Lenovo will leverage Razer’s concentrated gaming community to boost sales of high-performance PCs, as the company seeks to improve profitability following their $714 million USD net loss last quarter.
The co-branded device will launch in 2016, according to Razer, and will feature the game company’s trademark lighting effects. “Razer matches Lenovo’s scale and broad appeal with a high-touch dedication to the gaming community,” Razer said in a release.
“Additionally, both companies are looking to jointly double down efforts to fast track the development of new technologies, including gaming experience enhancements. ”
While PC sales are shrinking globally, gaming hardware has experienced a resurgence, prompting the world’s leading PC vendors to increasingly target gaming communities.
China has a particularly healthy appetite for gaming PCs. Currently PCs are the top gaming device by revenue in China, with an expected revenue of $16.8 billion USD in 2015, far outweighing mobile and console gaming.
Lenovo is now fighting their way back to net profitability due to the costs of integrating recent acquisitions Motorola and the IMB x86 server business. While Lenovo’s PC business has remained profitable in itself, its growth is slowing according to second-quarter financial results.
The company is not known for their gaming computers, though it has bullishly cut into the market over the past two years. This September Lenovo released their Y-series laptops and desktops, designed for the company’s growing cult fanbase of gamers.
Lenovo isn’t the only company that has turned to high-performance PCs for salvation in a slowing market. Acer and Asus have also made strong commitments to gaming hardware. Graphics specialist Nvidia also saw earnings surge as of this November due to market demand for gaming graphics processing units (CPU), now making up 58% of the company’s total revenue.
Lenovo’s stock price has rallied somewhat in the past three months after shedding almost 30% over poor market share figures.