Mad Catz was counting on these plastic instruments to save its business. They didn't.
Things are looking mighty grim for long-lived gaming accessory maker Mad Catz this week, the company perhaps best known for making those cheap off-brand controllers you forced your younger sibling to use. Despite seeing significant sales from a publishing deal for Harmonix's Rock Band 4, Mad Catz announced that it is laying off 37 percent of its staff amid massive financial losses and a significant executive restructuring.
There were hints of trouble earlier in the week, when Mad Catz announced that longtime President and CEO Darren Richardson was resigning, alongside SVP of Business Affairs Whitney Peterson. Then the real bad news came down last night in the form of the company's quarterly earnings report: a $4.36 million loss for the last nine months of 2015, up from an $809,000 loss from a year before.
Mad Catz has been in dire financial straits since last summer, when the company notified investors that it was at risk of defaulting on its debt. At the time, Mad Catz executives said they were counting on a Rock Band 4 publishing deal to lead to "significant growth in sales and gross profit."
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