Nacon Sales Slip as US Customs Duties Hammer Accessories Segment
Event summary
- Nacon’s sales for the first nine months of fiscal year 2025-26 reached €124.2 million, down 4.4% year-over-year.
- The company’s third-quarter sales (Oct-Dec 2025) were €46.1 million, a 12.8% decrease compared to the previous year.
- Catalogue sales grew by 39.9% in Q3, driven by titles like 'Hell is Us' and 'Cricket 26', but back catalogue sales declined by 21.8%.
- Accessories sales plummeted 29.1% in Q3, primarily due to ongoing customs duty issues in the US market, which eased from a 66% decline in Q2 to 38% in Q3.
- Nacon now anticipates full-year 2025-26 activity comparable to the previous year, revising earlier forecasts.
The big picture
Nacon's performance highlights the vulnerability of gaming hardware and software companies to geopolitical trade tensions and shifting consumer preferences. The company's reliance on the US market for accessories sales exposes it to significant risk, while the decline in back catalogue sales underscores the challenge of maintaining engagement in a rapidly evolving gaming landscape. The revised forecast signals a potential shift in strategy, emphasizing a more conservative approach to growth expectations.
What we're watching
- US Recovery
- The pace at which US accessories sales recover will be critical, given the significant contribution to overall revenue and the ongoing impact of customs duties. Further easing of duties or alternative sourcing strategies will be key indicators.
- Catalogue Sustainability
- Whether the strong growth in 'Catalogue' sales can continue to offset weakness in other segments remains to be seen, especially as the pipeline of new releases slows.
- Market Outlook
- How Nacon navigates the broader slowdown in the video game market, particularly concerning back catalogue titles, will determine its ability to meet its revised full-year forecast.
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