Mad Catz looks to be in dire straights as several senior executives abandon ship ahead of their quarterly financial report, prompting a massive drop in stock value.
When it was announced that Mad Catz would be co-publishing Rock Band 4 with Harmonix, many assumed that this was the company’s Hail Mary effort to put some wind back into its proverbial sails. However, even then Mad Catz ended up having to secure extra funding just to get the game published, and an audit of their finances showed that if the game wasn’t a massive success, the company may have to cease operations altogether.
Though Rock Band 4 launched to a positive reception, the game did have some massive issues upon launch, and the company was forced to apologize for a massive shortage on peripherals. The situation unfolded much like it did when keyboards first came out for Rock Band 3, and it took several months to fully restock on items like the Xbox One legacy adapter.
Now that the company is due to release their quarterly financial results, however, it appears the future is looking grim for anyone working at Mad Catz – especially since many of the senior executives have opted to jump ship ahead of the publication of these finances.
The company also had a slew of high-profile changes in the week leading up to this report, including CEO Darren Richardson resigning from his post. He was replaced by former CFO Karen McGinnis, with former Vice President and corporate controller David McKeon picking up the open CFO position. Prior to the latest changes in leadership, chairman of the board Thomas Brown left his post last week, as did VP of Business Affairs Whitney Peterson.
Despite the fact that Mad Catz simply thanked these executives for their “many contributions throughout the years,” it’s hard not to notice when so many high ranking executives jump ship, and the company’s stock value plummeted downwards after the slew of roster changes. Most investors reacted predictably to the change-ups, and like the aforementioned senior staff members, seem to have jumped ship from the Mad Catz bandwagon.
As a result, the company has clocked in a devastating 25% drop in value for their stock cards, and we expect this will only get worse when the quarterly financials are released later today.
The company is due to celebrate its 27th birthday this year, and it’d be a shame to see the longtime peripheral producer go under. It wouldn’t be the first time a large studio from the old days has struggled to keep afloat, and if the fiscal report holds negative news, the company may be out of luck if they ever need to secure funding again.
What do you think about Mad Catz, Ranters? Do you think they’ll survive their current fiscal problems?