Gaming peripheral maker Mad Catz has been shut down. The company filed for Chapter 7 bankruptcy in the US and has begun to liquidate assets. It also means that the board of directors does not believe that the company can be saved and is selling everything off to settle its debts.
Mad Catz’s situation comes after taking a massive gamble with Rock Band 4. It entered into an agreement to co-publish and design instruments for the game, spending a large amount of money to do so. As a result, the company said that it would need Rock Band 4 to become a major hit in order to recover from the financial strain.
The incident with Rock Band 4 happened back in 2015, and the company has been struggling to stay afloat since then. Sales have not been as encouraging as it hoped, and quarterly revenue remained low. As a result, the board of directors voted to wind down the company.
ADVERTISEMENT
There will be no more Mad Catz products hitting stores ever again, which is a blow to fans of the brand. Especially those within the fighting game community who happen to like Mad Catz fight sticks. On the other hand, excess stock at stores will probably be going on sale soon.
[Source: Polygon]
