(Image credit: Razer)

Razer could defy expectations by releasing a third gaming-focused smartphone later this year despite laying off 30 employees (2 percent of its workforce) and reassigning others in February. The phone is expected to be called Razer 3.

According to a DigiTimes report today citing "industry sources," Razer "is likely to launch the third edition of its gaming handset" as it "moves to enhance the competitiveness of its gaming handset business" despite the restructuring announced in February.

Both of Razer's previous gaming-focused smartphones featured 120Hz displays and dual front-firing speakers that were supposed to make gaming on Android more appealing. The Razer Phone 2 also added vaper cooling, Razer Chroma RGB lighting and other features.

The Razer Phone 2 didn't blow our minds. Its edges made long gaming sessions uncomfortable, the display offered a high refresh rate but suffered compared to AMOLED screens and game devs weren't exactly rushing to support that 120Hz smartphone display anyway.

That's probably because, according to DigiTimes, only 100,000 gaming smartphones are shipped a year. Game developers are less likely to tailoring their products for such a niche market when the vast majority of people are using other devices.

But apparently that won't stop Razer and other companies from continuing to try. DigiTimes said that Xiaomi, Vivo, Asustek, Nubia and maybe even Nintendo (based on "speculations") could be working on gaming smartphones.