Lexus Lexus pulls the plug on its auto parts clipArt
Lexus pulled the plug Wednesday on its line of auto parts clipsart, the company said in a statement.
The company’s video games and accessories division, Lexus Gaming, is shuttering.
In a statement, Lexis Entertainment, the parent company of video games, toy and car brands, said the company will remain in its current financial position.
We’re pleased to announce that we are no longer manufacturing automotive parts for Lexus gaming and accessories.
Lexus, the world’s largest maker of game consoles, toys, and cars, will no longer manufacture automotive parts clipsArt, the video games division, was the company’s primary product line.
The clipArt line was discontinued in September.
The announcement comes a day after Lexus announced that its gaming division would be closed as well.
Lexis Gaming had revenue of $1.4 billion in fiscal 2018, up about 30% from the year before.
Its total revenue rose nearly 50% from $926 million to $1,084 million.
The new line of products is the latest example of the company going through a transformation.
The video game division had been the company that had been working on a new product line for a while.
Lexos gaming division was first announced back in November 2016, when the company announced a new line with games for the Xbox One and PlayStation 4 consoles.
The original line was supposed to include new games like Deus Ex, The Witcher, Deus Ex: Mankind Divided, and Titanfall 2.
That game line had already been shut down.
In March 2017, a brand new game, Titanfall 3, was announced for the PlayStation 4.
However, the Xbox brand was shuttered from its new line in 2020, and the next game in the series, Titan: Evolution, was shelved from its Xbox brand.
This move was a departure from Lexus’ traditional gaming business.
The move also came at a time when the video game business is in a bad spot.
Consumer spending in the U.S. is down nearly 40% from a year ago.
This is due to the launch of virtual reality headsets like Oculus Rift and HTC Vive, which promise to change the way we interact with games.
Additionally, consumers are spending more money on smartphones and tablets than ever before.
However the move to video games may also be the company trying to diversify away from the car business.
Lexuses video game divisions were the third largest in the company behind its car and toy business.