Cherry’s Money Problems Hit Its Gaming Gear
Cherry is one of the most famous names in mechanical keyboards. Even if you have never owned a Cherry branded keyboard, there is a good chance you have used Cherry MX switches in a gaming board from another company.
That reputation has not protected the company from serious financial trouble. Between January and the end of September 2025, Cherry reported a net loss of about 23 million dollars on a turnover of around 82 million dollars. The result is a company now sitting with more debt than equity and forced to rethink its entire business structure.
The biggest question for gamers is simple. What happens to Cherry keyboards and mice and what happens to Cherry switches that so many gaming keyboards rely on?
Peripheral Division Up For Sale
Cherry is split into different divisions and the one most gamers know is the Peripherals division. This includes all of Cherry’s keyboards and mice for both gaming and office use. That is also the part of the company that is now on the chopping block.
According to reports from German outlet Heise, Cherry is considering selling either:
- The Peripherals division, which covers gaming and office keyboards and mice
- Or the Digital Health and Solutions division, which is focused on medical and related tech products
For PC gamers, the peripherals side is the important one. Cherry has tried to grow its gaming presence in recent years. In 2022 it bought Xtrfy, a dedicated gaming peripheral brand known for esports focused keyboards, mice and mousepads. Now that entire gaming push may be passed on to a new owner if the sale goes ahead.
This is not the first time Peripherals has been hit. In 2024 Cherry already restructured this division, cutting back and trying to streamline operations. The latest move shows that did not fix the underlying problems.
Cherry’s chief financial officer, Jurjen Jongma, highlighted why things are so constrained. The company’s market value is low and its share price has dropped below one euro. That makes it very hard to raise fresh capital in a normal way. Instead Cherry is looking at mergers and acquisitions as its main lifeline.
If the Peripherals division is sold, the most likely outcome is that another company takes over Cherry and Xtrfy branded keyboards and mice. That buyer would probably keep making gear for gamers, but designs, build quality and long term driver support could all change depending on who takes control.
Cherry Switches Move Abroad But Stay Alive
There is a separate piece of good news for PC builders and keyboard fans. The actual Cherry MX switches and the newer MX2A switches belong to the Components division, not Peripherals. This division is not currently being lined up for sale, so Cherry switches themselves are safe for now.
However, the way Cherry makes those switches is changing. Udo Streller, the company’s chief operating officer, announced that Cherry is shutting down its switch production in Auerbach, Germany. That site has a long history with Cherry and is a big part of the brand’s German made reputation.
Production is being outsourced to plants in China and Slovakia, while the Auerbach site will become a service hub instead of a manufacturing base. For enthusiasts who liked the idea of German built switches, that is a big shift in identity.
From a performance point of view, this move does not automatically mean lower quality. Many competitors already manufacture in Asia or Eastern Europe and still deliver strong consistency. The impact will depend on Cherry’s quality control in those new factories and how well it manages the transition.
Why Cherry Is Struggling In The Gaming Era
Cherry once controlled the mechanical keyboard market thanks to its patented Cherry MX design. That patent expired in 2014 and changed everything. After that, other companies were free to copy the MX style and many did exactly that, often adding their own upgrades and tweaks.
Competing brands have quickly iterated on Cherry’s original design. Some have offered factory lubricated switches for smoother key presses straight out of the box. Others have focused on custom colors, different spring weights and special feels aimed at both gamers and typists.
Cherry was also relatively slow to jump into newer technologies like Hall effect switches. These use magnetic sensing instead of traditional metal contacts, enabling features like adjustable actuation points and extremely high durability. While other gaming brands pushed into this space aggressively, Cherry’s response lagged behind.
On top of that, the post pandemic market for gaming peripherals has cooled. Many people already upgraded their keyboards, mice and headsets during lockdowns. With demand slowing and competition increasing, Cherry has been squeezed from all sides.
What This Means For Gamers And PC Builders
If you are a gamer or PC enthusiast, here is what all this likely means in the near term.
- Cherry branded gaming keyboards and mice may change owners. There could be rebranded or redesigned products depending on who buys the Peripherals division.
- Existing Cherry and Xtrfy boards should keep working as normal, but driver and software support over the long term will depend on any new owner’s priorities.
- Cherry MX and MX2A switches are not being discontinued. They remain part of the Components division, although production is moving away from Germany.
- The wider switch market will stay very competitive. Rival brands already offer MX style and Hall effect switches, many with added features targeted at gamers.
For now, Cherry gear is not disappearing overnight. You can still buy Cherry switches and Cherry keyboards, and other keyboard brands will continue to use Cherry MX if they want that classic feel.
The real story is that the company behind one of PC gaming’s most iconic switch technologies is fighting to stay relevant in a crowded, fast moving market. Whether a new owner can revive Cherry’s gaming presence or whether other brands will fully take its place is a question the next few years will answer.
Original article and image: https://www.pcgamer.com/hardware/gaming-keyboards/the-cherry-era-might-be-at-an-end-as-the-company-pulls-the-plug-on-german-manufacturing-and-plans-a-big-sell-off/
