Third-party hardware manufacturer Mad Catz has filed for Chapter 7 bankruptcy. As per the terms of Chapter 7 bankruptcy, Mad Catz, Inc. must now sell off all remaining assets and use the proceeds to pay off their outstanding debts. The nature of this agreement also means that the company does not intend to try to start up again once their debts have been settled. This move effectively spells the total end for the company.
The company’s decision to file for bankruptcy doesn’t come as much of a surprise to those who have been following the manufacturer’s business moves as of late. As Polygon reports, Mad Catz has been losing massive amounts of money for months. However, their problems date back much further than that.
Unfortunately, Mad Catz has been struggling for years now. As reseller markets became more and more common, their discount hardware offerings lost much of their appeal. However, the tipping point seems to have been the failure of Rock Band 4. Mad Catz ended up co-publishing the game and was relying on the game to be a huge hit so that they could move a large number of instrument peripherals. The hope was that the company could match the success they enjoyed when the music genre was at its peak and peripherals were flying off shelves.
When Rock Band 4 failed to meet sales expectations, Mad Catz was left with few options. The company’s CEO and chairman resigned in February 2016 and Mad Catz laid off almost 40 percent of their staff shortly thereafter. That only kept the company alive for so long as their stock soon dropped drastically. At that point, bankruptcy was really the only option Mad Catz had left.
Mad Catz was first founded in 1989 as a peripheral maker. The company’s peak came in the late ’90s to early 2000s when a new wave of popular multiplayer games hit the market and inspired gamers to purchase discount extra controllers and other accessories. While Mad Catz has produced some award-winning hardware and more ambitious projects like their Android console M.O.J.O., a legion of gamers will forever remember them as the company that made that controller you used when you visited your friend’s house.