NACON's Gaming Hits Can't Offset Steep Accessory Market Decline

LESQUIN, FRANCE – January 19, 2026 – Gaming company NACON released a mixed financial report today, revealing a stark divergence between its thriving video game publishing division and its struggling hardware segment. The company reported consolidated sales of €124.2 million for the first nine months of its 2025-26 fiscal year, a 4.4% decrease from the same period last year. The downturn, driven by a sharp decline in accessory sales, has prompted the firm to revise its full-year forecast, now anticipating activity comparable to the previous financial year.

The announcement paints a picture of a company fighting a war on two fronts. While its strategy of publishing AA video games is bearing fruit, significant external headwinds in the gaming peripherals market, particularly in the United States, are dragging down overall performance. For the third quarter ending December 31, 2025, total sales fell 12.8% to €46.1 million, highlighting the escalating challenges.

A Tale of Two Divisions

A closer look at NACON's financial results reveals two dramatically different stories. The company's Games division has been a powerful engine of growth, with revenue for the nine-month period climbing an impressive 15.7% to €82.3 million. This success is overwhelmingly powered by its 'Catalogue' of new titles, which saw sales skyrocket by 47.4% to €42.1 million.

According to the company, this robust performance was driven by the continued success of the action-adventure title Hell is UsTM and the quarterly launches of Cricket 26 and the racing simulation RennsportTM. This strong showing in new game releases suggests NACON's investment in its 16 development studios and its AA publishing strategy is successfully capturing player interest and outperforming a generally sluggish market for new content.

In stark contrast, the Accessories division has faced a severe downturn. Revenue for the nine-month period plummeted by 30.5% to just €37.7 million. The third quarter was particularly harsh, with accessory sales falling 29.1% to €17.9 million. This performance gap underscores the volatility of the gaming hardware market compared to the more content-driven games segment.

Unpacking the Accessory Market Anomaly

NACON attributes the steep decline in its accessories business primarily to a difficult U.S. market still reeling from the impact of increased customs duties. While the company noted the rate of decline in the U.S. was easing—down 38% in Q3 compared to a staggering 66% in Q2—the damage has been significant. This issue is not unique to NACON, as the entire industry has grappled with U.S. import tariffs on Chinese-made goods, which temporarily soared as high as 145% in 2025 before being reduced.

These tariffs have compounded a broader contraction in the American video game market. Recent industry data shows U.S. consumer spending on video game accessories fell 11% year-over-year in March 2025, with some categories like headsets dropping by as much as 19%. This slowdown is linked to several factors, including a maturing console cycle for the PlayStation 5 and Xbox Series X|S, which has cooled the initial rush for new peripherals. Furthermore, persistent inflation has tightened household budgets, making discretionary purchases like premium controllers and headsets less of a priority for many consumers.

While the market is challenging for all, NACON's 30.5% nine-month decline appears more severe than that of some key competitors. Industry leaders like Razer and Turtle Beach, while also citing market pressures, have reported areas of significant revenue growth in recent periods. This suggests NACON may be particularly exposed to the market's most challenged segments or facing stiffer competition for market share.

A Fading Back Catalogue and Shifting Player Habits

Adding to the pressure, NACON's 'Back Catalogue'—games released in previous fiscal years—has also seen a downturn. After two quarters of growth, back catalogue sales fell 21.8% in the third quarter. The company cited a high basis for comparison and a general "market decline" as the primary reasons.

This trend aligns with broader shifts in how gamers consume content. The rise of subscription services like Xbox Game Pass and PlayStation Plus provides players with access to vast libraries of older titles for a monthly fee, reducing the incentive to purchase them individually. At the same time, the market is dominated by a handful of massive, free-to-play "forever games" that command a disproportionate share of player engagement and spending, making it difficult for older, premium titles to compete for attention.

A Look Ahead: Can New Games and Consoles Spark a Recovery?

Despite the revised forecast, NACON is looking to its upcoming slate of games and potential market shifts to regain momentum. The final quarter of the fiscal year will see the launch of several major titles, including Styx: Blades of GreedTM, GreedFall The dying worldTM, Gear-Club Unlimited 3TM, and Dragonkin: The BanishedTM. The company's ability to replicate the success of its recent 'Catalogue' hits will be critical to offsetting the ongoing weakness in accessories.

On the hardware front, NACON is pinning its hopes on Europe. The company anticipates a boost from accessory sales tied to the rumored 'Switch 2', Nintendo's highly anticipated next-generation console. A new console launch typically triggers a significant wave of peripheral purchases, and industry analysts widely expect Nintendo's new hardware to provide a major stimulus to the market in 2026. NACON is also preparing for the February release of its new generation RIG R5 PRO HS headset, hoping to capture fresh consumer interest.

However, the company's cautious revision of its full-year outlook indicates that these future catalysts are not guaranteed to reverse the current trend immediately. NACON's path forward now depends on its ability to successfully navigate the turbulent hardware market while continuing to execute its proven, high-growth strategy in game publishing.