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Photo credit: paha_l / 123RF.

The audience is listening today as gaming technology dynamo Razer announced its acquisition of veteran sound specialists THX.

Razer has nabbed a majority stake in the Lucasfilm-born company. The details of the deal were not disclosed.

The cult brand that THX has built over the years was one of the reasons Razer moved in, co-founder and CEO Min-Liang Tan tells Tech in Asia. Founded by Star Wars creator George Lucas back in 1983 and spun off on its own in 2002, THX has tied its name to technology and innovation in audio, particularly in movie theaters.

Chances are, you’ve heard the distinctive glissando accompanying its logo on a cinema screen before the movie starts.

THX comes with rich intellectual property in sound products and tech as well as experienced audio scientists and specialists. The San Francisco-based outfit has developed numerous technical standards for movie screens, home theater sets, speakers, concerts, and even gaming consoles and video games – a space that Razer happens to know well.

Under the terms of the acquisition, the day-to-day at THX isn’t expected to change much. It’ll retain its management and employees and operate as “an independent startup,” able to partner with third-party product makers and service providers.

Razer, on the other hand, will work extensively with its new acquisition to boost its own gaming and entertainment-related offerings. “We’re custodians of a cult brand ourselves,” Min-Liang muses. That means Razer is very conscious of what makes THX a strong name and doesn’t want to mess with it. It also means you probably won’t be seeing “THX by Razer” or anything like that on a cinema screen.

Razer co-founder and CEO Min-Liang Tan. Photo credit: Razer.

Loud and clear

Razer’s plans for the house that George built are straightforward in the short term. “[For now] the benefits are clear,” Min-Liang says. “We’ve got some of the best gaming headsets out there but the rest of our audio products are not as broad.”

It comes as VR is on the cusp of breaking into the mainstream.

As Razer makes a range of gaming-related products including headsets, laptops, and tablets, THX’s audio standards and tech can help take these offerings to the next level.

But Razer didn’t need to go out and buy THX just for that.

The lines between different facets of entertainment continue to blur, with many people enjoying watching games as much as playing them. Virtual reality is on the cusp of breaking into the mainstream, combining games, film, and music in intriguing new ways.

Razer wants to be in the middle of all this. “Longer-term, we’ve got the ambition to be one of the biggest entertainment companies in the world,” Min-Liang says.

China is listening

The acquisition is well-timed to take advantage of a cinema surge in China, which has seen deals like Alibaba Pictures partnering with Steven Spielberg’s company, Amblin Partners.

THX is working with several entities like China Film Group, China Giant Screen, and The China Film Equipment Company to implement its audio specification standards in their partner theaters.

THX certifies audiovisual systems in movie theaters to make sure they meet a certain standard of quality. Photo credit: Ged Carroll.

THX CEO Ty Ahmad-Taylor recently told China Film Insider he feels Chinese audiences are growing more sophisticated in what they’re looking for in their cinematic experience, making the company’s standard-setting tech more desirable. Plus, they want more out of the movies if they’re going to choose them over home entertainment systems.

“Cinemas have to compete with people watching online and watching at home,” he told the website. “If consumers feel they can get the same experience at home then they won’t come out. That’s why you’ve seen this move towards quality.”

“We’re in a position to help THX grow its business in Asia,” adds Min-Liang.

Razer has amassed a disclosed total of US$125 million in external funding to date, from investors like Intel Capital, IDG Capital Partners, and Accel Partners. It previously acquired the software side of Ouya, an Android-based gaming console, incorporating it into the Razer Forge TV set-top box.

This post Razer acquires George Lucas’ audio firm to grow entertainment empire appeared first on Tech in Asia.

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