For those who love quality headphones, EPOS is obviously a name that resonates. The brand was born out of a collaboration between Demant and Sennheiser electronic over 20 years ago. However, in 2018, a change in strategy led Sennheiser to pull out and end its involvement in gaming. Demant wished to continue by creating a new independent entity, EPOS, within the group. While the winds of the pandemic may have boosted sales for a time, it was at the design level that the shift was felt. The outsourcing of production to China was immediately noticed by purists.
The gaming market continues to consolidate
A few days ago, Demant announced that it would be gradually scaling back its Gaming business and concentrating more on core enterprise solutions within its Communications segment. The Gaming business will be wound down gradually, and EPOS will continue to serve and support its customers while reducing existing product inventories.
Following extraordinary demand triggered by the pandemic in 2020, the gaming market has slowed considerably due to weak consumer demand, and we see no viable path to creating a profitable business without significant investment in products, branding and distribution. We naturally regret the impact our decision will have on the employees affected, and would like to thank all the employees who have worked so hard to develop the Gaming business in difficult circumstances.
This decision therefore follows the (predictable) market downturn at the end of the pandemic and a review of the future growth potential and competitiveness of the Gaming business, and follows a period of weaker-than-expected results due to weak market conditions and a lack of scale and critical mass.