The day before announcing their financials, Mad Catz saw the departure of some of their executive staff. Now the news it out and it looks like the company is in for a tough year.
First, the upsides: The company had its second-highest quarterly sales to date, and Rock Band 4 was cited as a source of “strong” sales.
The bad news is a bit more extensive. The strong quarterly sales and Rock Band 4 performance were offset by “continuing softness” in PC gaming and audio markets. Rock Band 4‘s strong sales weren’t quite strong enough on their own; they came in a bit lower than forecast, resulting in deeper sale prices at retail to clear inventory, which gave Mad Catz a smaller margin. The company also saw a 10 percent decrease in net income, losses of $4.4 million over the last nine months.
All of this difficulty means the company has laid off 37 percent of their staff as part of a restructuring effort intended to save the company $5 million annually. Mad Catz has proven to be a strong provider of third party peripherals, putting out a line of great fight sticks and fight pads, as well as solid PC headsets and mice, along with Rock Band instruments and more. We hope the company can recover and, more importantly, that those affected by the layoffs are able to take their talents somewhere new.