Hardware Maker Shuts Down after Months of Financial Problems
Mad Catz, Inc., the long-tenured third-party hardware maker, has finally reached the end of the road. After months of financial problems, the company has filed for Chapter 7 bankruptcy. The company officially shut down on March 30th and began selling off assets. All proceeds from the sale of its assets are going straight to lenders.
Since 1989, Mad Catz has focused on making accessories for game consoles and PCs. The list of accessories included controllers, cables, memory cards, and headphones. When rhythm-based band games became all the rage, they stepped in and made accessories for the Rock Band series. My favorite Mad Catz accessory is the Street Fighter IV FightStick Tournament Edition Arcade Controller. They made the controller on commission by Capcom, and they are AWESOME!
Recently, however, Mad Catz hit a very rough patch. They took a chance on a resurgence of the rhythm-based band games, going all-in with Rock Band 4. Not only did they design the instruments for the game, but they co-published the game. Unfortunately, poor sales of Rock Band 4 hit them hard. They needed the game to succeed to stabilize their finances. The poor sales led to Mad Catz posting huge losses in its next quarter.
Prior to its chapter 7 filing, Mad Catz laid off 37 percent of its staff. Its CEO and chairman had resigned before the layoffs. Attempts to increase its shareholder value failed, leading to a massive plummet of its stock. After their stock tanked, the board of governors voted to end all operations and file for bankruptcy.
So ends Mad Catz. It’s sad to see them go; for quite a while, their accessories were viable alternatives to the more expensive official products. I still have two of their 8 MB memory cards on my PS2. But all things eventually end. RIP Mad Catz.