The head of Logitech discussed the latest developments and opportunities at Logitech in a detailed interview with TheVerge.
Hanneke Faber has been CEO of Logitech since December 1, 2023. The English-language magazine TheVerge talked to the new CEO in an interview. The conversation also touched on how Logitech will proceed in the future.
Logitech’s CEO could envision a subscription mouse
What’s with the subscription? In the interview, the interviewer asked whether the CEO could imagine a subscription system for a mouse from the company. Specifically, it was about a mouse that should “last forever.”
Faber responded with “possibly.” After all, the advantage of such a subscription would be that one would “never have to worry again.” It would also not be the first product from Logitech with a subscription.
However, the head of Logitech does not elaborate further on what an official “mouse subscription” could look like. It is therefore unclear whether such a mouse could also be used with a computer without a subscription or whether a subscription is needed to use the hardware. It is also unknown whether it could be an office or a gaming mouse.
What does this mean for gamers? Gamers are generally not very enthusiastic about subscription services. For example, Ubisoft caused an uproar when it stated that customers do not actually own purchased games. If Logitech were to pursue a similar model now, it would likely cause little enthusiasm. Subscription models or so-called “season passes” are unpopular among gamers and are often seen as a necessary evil to be able to play certain games.
Subscriptions are becoming increasingly attractive as a financial incentive for companies
Why are subscriptions important? Subscriptions or ongoing services consistently bring money into companies’ coffers. Because companies can count on buyers paying a fee every month. This is not the case with a one-time purchase.
Prime examples of companies that use such subscription systems are Microsoft and Adobe. Both companies rely on subscription models for popular software like Photoshop or Word. And Microsoft’s financial numbers show, for example, that subscriptions, digital services, and especially servers now bring in the most money. The Windows operating system, long the flagship of Microsoft, is hardly financially important anymore. Products like the Game Pass constitute only 1.5% of total profit.
Because it is financially rewarding, Microsoft is also increasingly pushing users to utilize a Microsoft account and corresponding subscription models like Office365. Because this allows Microsoft to make continuous profits, unlike a one-time paid Windows license. This does not necessarily please users, but it seems to be financially advantageous.
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