Do you like video game peripherals manufacturer Mad Catz? You may be a fan of their arcade joysticks, or their racing wheels, or other video game controllers and peripherals. Unfortunately, Mad Catz is a in a tight spot at the moment, and its only savior could be Rock Band 4.
Mad Catz posted a net income of 4.7 million last March 2015. The peripherals company has been losing money since 2011. As per their contract, they issued a mandated credit warning to their primary lender, Wells Fargo. Basically, they confirmed with Wells Fargo that they did not make as much money as projected, and the bank had the option to call in its loan, effectively closing the company.
Thankfully, Wells Fargo put their support behind Mad Catz, and chose to waive their prior agreement in favor of a new one that is effective until July 31, 2016. For their part, Mad Catz’s CFO, Karen McGinnis, downplayed the harsh language they used to describe their situation, explaining they needed to be blunt in financial documents, but the reality is better than it seems.
Mad Catz’ received a new loan for $ 20 million, and around the time Rock Band 4 ships, that amount may go up to $ 35 million. Mad Catz is betting big on Harmonix’ latest rhythm music game to bring them back to profitability.
Do you plan to buy Mad Catz’ Rock Band 4 peripherals or other products? How do you feel about their current financial state? Share your thoughts with us in the comments.