Unidentified Analyst: Got it. Thank you.
Operator: [Operator Instructions] Our next question will come from Doug Creutz with Cowen. You may now go ahead.
Doug Creutz: Hi, Thanks. As you noted, this year has gone pretty much according to what you expected. You’re headed towards the middle of your initial guidance range, which suggests that your ability to forecast is sort to back to normal levels after several years where things were disrupted. Given that, as you sort of think about next year, do you think the industry is going to be headed back to its historical long-term growth trajectory that you talked about at your analyst’s day and if not, you know, what do you still see out there that you think could hinder that? Thank you.
Andy Paul: Yes, that’s a great question because we’re just starting our planning for next year. So right in the thick of that. So we assume that eventually growth rates will get back to where they were. What gives us some positive feelings is that we reference this survey that just came out from DFC, which is confirmation of what we thought would happen is, in other words, there would be an echo of the COVID bulge one refresh cycle later. And one refresh cycle later, which for us is about three to four years, is ’23 and ’24. So we do expect a bulge. I think what’s happening at the moment is a lot of the new gamers or gamers for the first time were buying hardware during lockdown, there’s an increased number of those and they’re starting to refresh and re-buy.
And that may be offsetting perhaps some softness in the overall market. And the net of that means that we end up with a market today that’s pretty flat. We would hope that this bulge would continue into next year and we’ll start to see some growth. So I think we’re modeling still, not a lot of growth in the first half, but we’d expect it to pick up. I’m hoping by ’25 and ’26 we get back to the traditional, 15% plus growth for gaming peripherals and 5% to 10% for components. So that’s as best as we can forecast it at the moment.
Unidentified Analyst: Thank you.
Operator: Our next question will come from Colin Sebastian with Baird. You may now go ahead.
Colin Sebastian: Good afternoon, Andy and Michael. It’s Reese on for Colin. We have two questions. I guess the first one would be, could you guys provide an update on D2C revenues and the overall mix of the company, especially given how that might change with Drop next year, presumably, it’s going higher. And then I guess second, maybe more around the state of the consumer and what you guys are seeing, I guess it sounds like things are going well around the gaming launches and things like that. But maybe more specifically, have you seen changes in behavior from gaming launch to gaming launch? If you were to take a gain that launched this year versus a gain that launched last year, are you seeing a difference in consumer behavior from that end? Thanks.
Andy Paul: Okay. So two different questions. So the first one in D2C percentage. D2C percentage is actually maintained about the same as it was last year. We obviously are hoping for some growth with Drop. Drop is not a big acquisition or a big revenue number. So it will not be hugely significant. We’re running right now, I think, about 10% overall is direct-to-consumer. And obviously, we’ve got goals of raising that up to 15% plus and Drop will have a small positive effect on that. The second question was more around what are we seeing related to some of these launches. We haven’t seen anything from an individual game. In other words, not like when Fortnite launched, everyone was rushing out to buy headsets. But what we have seen is a lot of engagement.
