Rock Band 4's Publisher Mad Catz Has Laid Off Over a Third of its Staff

By Ian Dransfield on at

Rock Band 4 publisher and peripheral maker Mad Catz has followed up on its recent executive resignations with the release of more than a third of its workforce.

We reported yesterday on how "Thomas Brown, Darren Richardson, and Whitney Peterson, Mad Catz's chairman, CEO, and senior vice president" had all resigned just a few days ago, before the company's financial results were published.

I'm no expert, but that didn't look like a positive move.

Mad Catz has now announced that things are going much further than that, with 37 per cent of its employees to be let go in restructuring moves to help the company save around $5 million (£3.45 million) a year.

In one of those fun little 'huh?' moments, Mad Catz actually saw sales increase 114 per cent in the last three months of 2015, over the same time period in the previous year.

But, as president and CEO Karen McGinnis helpfully pointed out, this doesn't automatically mean good news, because: "... Rock Band sell-through was lower than originally forecast resulting in higher inventory balances as well as lower margins due to increased promotional activity with retailers."

So sales might have been up, but the promotion and manufacture of the peripherals ended up being a bit of an albatross around Mad Catz's neck, thanks to Rock Band 4 just not doing all that well.

And this is why nobody takes any risks in gaming.