Logitech Pauses Development of Handheld Gaming Device

Logitech’s new gaming head, Robin Piispanen, shares his enthusiasm for gaming handhelds, calling them a “charming value proposition” as we enjoy iced vanilla lattes at a local café. However, he’s not currently working on one, expressing uncertainty about when or if Logitech will venture into that space again after the lukewarm reception of the Logitech G Cloud streaming handheld. “At this moment, we have bigger priorities than launching a second G Cloud,” he explains.

I believe the G Cloud might have a better shot today. When it launched in 2022 at $350, it was largely overshadowed by the more powerful $400 Steam Deck, which could run games without needing a stable internet connection. Now, with the Steam Deck’s price climbing to $789, the landscape for handhelds has shifted dramatically, making the current market quite expensive.

Sony has recently hinted that cloud gaming handhelds, like the PlayStation Portal, could be a viable option in the face of rising memory costs. A top PlayStation executive noted that cloud streaming requires minimal memory, making it an appealing low-cost device in today’s market. Last year, I found that Nvidia’s GeForce Now had progressed enough to revitalize existing handhelds.

It seems Logitech faced challenges with its initial Tencent-backed G Cloud attempt, as even some buyers were left unsatisfied. Piispanen acknowledges that while there was a dedicated group of fans, the majority of users didn’t stick with it. “The larger portion, about 80 percent, bought it, tried it, and then it ended up in a drawer,” he says.

He reflects on the experience, stating, “We tried something we believed in, but it didn’t materialize into the use case people wanted.” Another hurdle was the slow development of infrastructure by major cloud gaming providers. “Cloud gaming really stagnated,” he notes, adding that Microsoft has pointed out the high costs associated with running cloud services.

When asked if Logitech would consider creating a standalone handheld using insights from the G Cloud, Piispanen is uncertain. He mentions it’s theoretically possible but emphasizes that Logitech’s strengths lie in design and input, suggesting they would likely partner with another company for additional components.

He also expresses skepticism about entering the handheld market, stating, “The handheld only works at a large scale, and most companies in that space own their content.” He points out that companies like Nintendo and Steam have that advantage.

We both agree that acquiring studios hasn’t yielded great results for Sony and Microsoft lately, and he shows little interest in competing with companies like Asus and its Xbox Ally X. “They operate on slim margins and don’t own anything. They have to collaborate with others to succeed. It’s a tough business.”

If Logitech were to revisit handhelds, Piispanen believes cloud gaming could still be the future, but not just yet. “Cloud addresses weight, battery life, and graphics. It resolves many issues… playing locally doesn’t have those barriers.”

He cryptically mentions that Logitech is investing in the future of cloud gaming despite the G Cloud’s outcome and is in discussions with major players. “We talk to Microsoft, Tencent, and others: what do they see? How can we potentially be part of that?”

I ask if he anticipates a significant drop in cloud infrastructure costs or if aging Nvidia AI data centers could become useful for gaming. He agrees with my speculation but can’t pinpoint when it might happen.

“If you figure it out, please let me know,” Piispanen says.

I also discussed other topics with Logitech’s new gaming head; stay tuned for more insights from our conversation!