When Sennheiser and its partner Demant decided to part ways with their nearly 20-year joint venture in 2020, Epos (owned by Demant) became the new home for Sennheiser’s enterprise and gaming product divisions.

Although there were high hopes for Epos due to the growth of the gaming market, in recent years, Epos’ gaming business has been worse than expected. Faced with a situation where additional investments were needed to keep the gaming division alive, Demant decided to cut losses.

Epos has announced that it will exit the gaming headphone business and instead focus on enterprise communications products. The company’s gaming products division, which was previously part of the legendary Sennheiser, was responsible for supplying a number of notable gaming headsets over the past decade. According to Epos employees’ posts on social media, the company has already laid off all employees of its gaming division. Although the company said it would continue to support customers and sell off existing products in the coming months.

It is expected that the disbandment will take a long time and will continue in 2024. Going forward, Demant aims to expand its product portfolio for the business and develop distribution partnerships. In 2024, Demant expects this downsizing to result in higher margins and a more favorable financial position in the near term.