Mad Catz, Best known for Rock Band and various peripherals have followed up on its recent executive resignations with the release of approximatey 37% of its work force. Mad Catz stated that the plan should lead to annual savings in excess of $5 million starting in the first quarter of 2017.
Mad Catz invested heavily in Rock Band 4, for which it produced the game’s set of instrument controllers. It also handled Rock Band 4’s global retail sales, plus promotion and distribution of the game and hardware bundles.
Mad Catz’s chairman, CEO, and senior vice president had all resigned just before the company’s financial results were published. The company earlier stated that the success of Rock Band 4 was necessary to reach there expected gains, which we can assume didn’t happen.
While the company did enjoy its second highest quarterly sales yet, with revenues that grew 114% to $65 million, net income dipped 10 percent to $1.2 million.
Recently Mad Catz have been promoting a new line of arcade sticks for the big release of Capcom’s fighting game Street Fighter V, unfortunately recently the makers of Street Fighter V have confirmed that the game will be compatable with older versions of a number of fightsticks, including Playstation 3 sticks, which has implemented a huge rise in cancellations of the new TE2 and TES+ sticks, which cannot be good for a company that is seemingly on the edge.
Mad Catz released a statement saying.
“Looking ahead, we are confident that we have a talented leadership team in place that will enable us to steer the Company on a steady course in its operations and financial performance as we look to grow our business and reward our shareholders.”
As a previous owner of a few Mad Catz peripherals, I love the hardware but not sure how they will get back to the way they were. Saying that I will still probably get a TES+ because they look great.
What do you think about the Mad Catz company letting go of a third of their staff?