Gaming Peripheral Maker Mad-Catz Closes
While a well-known brand for all sorts of gaming hardware such as mice or joysticks, Mad Catz Interactive has officially announced it’s closing down, due to the company going bankrupt. Because it declared bankruptcy , this means the company assigned all of its property to a trustee, in this case PricewaterhouseCoopers Inc, which would oversee the liquidation of company assets in order to pay off debt.
This comes as no surprise, as the company has faced financial issues for many years, with profits slowly decreasing as time went on. Last year the company laid off nearly 40 percent of its workforce, following a major investment in developing peripherals for Harmonix’s Rock Band 4. Things hit a rock bottom in January of this year, as an announcement in regards to new Tekken series fight-sticks was followed with a warning by their stock broker, as their value had become as low as $0.4.
“Regrettably and notwithstanding that for a significant amount of time the Company has been actively pursuing its strategic alternatives, including various near term financing alternatives such as bank financing and equity infusions, as well as potential sales of certain assets of the Company or a sale of the Company in its entirety, the Company has been unable to find a satisfactory solution to its cash liquidity problems,” Mad Catz president and CEO Karen McGinnis said in a statement.
Unfortunately this will leave a massive hole in the market in terms of gaming peripherals, as Mad-Catz has provided quality equipment to gamers in the past. While it will remain to be seen if this hole is filled by another company, or if gamers will need to resort to lesser known outlets. Mad Catz was founded in 1989 and has been making PC, console and mobile gaming peripherals for nearly three decades, showing an impressive run, which only makes this slow death all the more tragic.