➤ There was a general long-term trend of people getting into games well before COVID-19, and this trend will continue after the pandemic subsides.

➤ Most gamers have not yet purchased any gaming accessories and peripherals, representing a large untapped market for Corsair.

➤ Gaming will become even more mainstream as streaming and esports gain traction.

Corsair CEO Andy Paul Source: Corsair

Fremont, Calif.-based Corsair Gaming Inc. is a computer hardware company that went public Sept. 23, 2020, with its IPO priced at $17 a share. Since then the company has had steady year-over-year revenue growth each quarter, benefiting from a surge in gaming and livestreaming amid the COVID-19 pandemic.

In an interview with S&P Global Market Intelligence, Andy Paul, the co-founder and CEO of Corsair, said that although the boom in gaming may slow down after the pandemic subsides, the industry is still headed toward significant growth in the long term. The following is an edited transcript of the interview.

S&P Global Market Intelligence: The video game industry has benefited from people sheltering at home during the pandemic. Will the growth continue as consumers return to offices and schools?

Andy Paul: I get this question about whether the market will tank once everyone stops sheltering at home a lot. Probably not. There has been a general long-term trend of people getting into games well before the pandemic. What we're finding is that all COVID has done is get people more involved in gaming. Some used their free time while sheltering at home to get into it, while many started playing more significantly than they already were.

Some things are very clear. If you stop working at home, you will watch less TV and consume less Netflix. People will also probably play games a little less, but they will not just stop altogether after they are vaccinated. This is a hobby many are passionate about and it's not going anywhere. If anything, people are just getting even more committed about gaming and this trend will continue well past COVID.

Will consumers continue to purchase peripherals once they are able to leave their homes and spend money on other activities such as traveling?

When we were on our IPO roadshow last year, everyone was asking me whether the lift in sales was temporary and if orders for our products would dry out by December. Obviously, that was not the case. Just like how people won't just stop playing games after they get vaccinated, they won't stop buying gear to play those games. Gaming is a hobby like many other activities or sports, like say, golf. Once you get into it, you will continue to buy gear to support that hobby, like how a golfer would buy new clubs.

It's also worth noting that the U.S. has around 130 million PC gamers and 100 million of those are actually spending money on games. A vast majority of these people have not yet bought any gaming gear, so the market is largely untapped for us and we continue to expect growth in demand for our products.

Game streaming has taken off amid the pandemic, with a record number of people both streaming their games and watching other people play. Do you expect this trend to continue?

The game streaming market is massive now and it will only grow as more and more people get on platforms like YouTube and Twitch to share their gameplay or watch others play. YouTube has over 40 million gaming channels now while Twitch has around 9.7 million, and that's not even including the Chinese channels. Streaming requires equipment like decent cameras and mics, so Corsair has been benefiting from the growth, with our Elgato products for content creators performing spectacularly well.

Although Corsair typically targets its products at gamers, has there been an uptick in sales to non-gamers during the pandemic?

While 99% of what we sell is to gamers and streamers, the increased usage of video conferencing tools such as Zoom could be a big driver of gear in the future. Last year every executive had to learn how to use tools like Zoom and they suddenly needed equipment to set up a home office. However, working at home doesn't necessarily require the type of headsets or cameras that people use to stream games, so we'll have to wait and see how this plays out.

Are there any major barriers or opportunities for growth for the industry in the near term?

Gaming is already mainstream and there are no real issues that I see that are keeping the industry from growing. The games are getting better and better and so is the hardware and technology. Initiatives like [SpaceX's] Star Link will provide internet to people living in remote locations so they can play games and stream without issues. And initiatives such as Gamer Sensei [the esports coaching platform Corsair acquired in November 2020] will make gaming even more mainstream.