Nacon’s Major Decisions and Current Status
Along with creating the US subsidiary, Nacon has also made a few other decisions that have been a part of the company’s aggressive expansion. Along with the appointment of Jack Reynolds, the subsidiary will come with a slew of other hires, which will fill out the rest of the high-level executives. These names include Peter Petrides, Corey Rosemond, Gregory Morquin, Tess Reddy, Matthew Villareal, and Andres Cardenas. Nacon’s Chief Executive Officer, Alain Falc, has highly touted each of these new additions to the company as forward-thinking experts in their roles who will each bring important pieces to Nacon.
The next major piece to Nacon’s aggressive expansion comes with their recent acquisition of the premium gaming headset company, Rig. The next executives hired by Nacon were previously a part of Rig. The acquisition of Rig, along with the creation of a US subsidiary, comes on the heels of the soon to be released Nacon game, Tennis World Tour 2, which is set to come out on September 24 on PC, Playstation 4, and Xbox One. The release date for the Nintendo Switch is October 15th. Adding to the new additions to their games is the expansion of cloud gaming at Nacon, which would then allow for gaming-as-a-service revenue in a way that has not been fully taken advantage of thus far. It would also help extend the revenue and lifespan of their current video games. As for the company itself, Nacon has had a quality year, and with this new push for a wider market, the future looks equally as high quality.
Nacon’s Future Prospects
In 2020, Nacon ended its financial year earning €129.4 million ($151.5 million). Their annual revenue is an impressive rise of 14.4% from the previous financial year for Nacon, showing strong signs of growth. The major point of interest in this would be their surge in profitability, with Nacon’s gross margin for the year being +26.7%. Even with high operating costs, the gross margins suggest how incredibly profitable and viable Nacon’s future looks. The rise in earnings and the diversified means of creating revenue have shown in their stock as well. From the beginning of 2020 to now, Nacon stock has risen by an incredible 20.39%.
This is then reflected in what future projections of annual revenues for the company look like as well. For 2021, Nacon is projected to earn an annual revenue of around €154 million ($180.3 million). The following year of 2022 has Nacon projected to make even more at a comfortable €174 million ($203.7 million). This upward trend will only continue in 2023, with Nacon’s estimated annual revenue looking to reach nearly €193 million ($226 million).
Nacon’s creation of a United States subsidiary is a massive step toward building a larger and more complete video game company. By creating a larger outreach for their video games as well as accessories, Nacon has taken the necessary actions to push their company to newer heights. When combining this news with the acquisition of the video game headset company Rig, Nacon has further diversified the paths toward revenue in ways that can help create a one-stop place for multiple gaming needs. All of this is simply to say that Nacon has completely equipped itself for massive expansion in the near future with the possibility of becoming one of the premier video game companies not just in France, but in the entire world.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.