Mad Catz executives resign

Rock Band 4 co-publisher Mad Catz has experienced a day of significant upheaval ahead of the publication of its latest financials. They are to be replaced by Karen McGinnis, former chief financial officer turned CEO and president; Tyson Marshal and Andrew Young, new general counsel and corporate secretary and chief technology officer respectively; and director John Nyholt as chair. He was joined by chairman Thomas Brown and Senior Vice president of Business Affairs Whitney Peterson, both of whom also vacated their seats. Mad Catz Interactive has a 1-year low of $0.23 and a 1-year high of $0.75. This realignment of our resources will also enable us to better support strategic initiatives that will make our product slate more competitive, help us gain added consumer interest and create sustainable shareholder value.

The company’s new earnings report will arrive later on tonight after the USA market closes. This resulted in “higher inventory balances as well as lower margins due to increased promotional activity with retailers”, McGinnis said. Following a filing to the US Securities and Exchange Commission (SEC) that its own executives have ‘substantial doubt about the Company’s ability to continue as a going concern, ‘ the company claimed that its deal to build the official controllers for Rock Band 4 would see it through to profit.

Mad Catz will hold an earnings briefing today at 2 PM PST / 5 PM EST where the company may offer additional insight into its business performance and the workforce reduction.

As a result of the sudden resignations, Mad Catz stock has taken a major hit.

Mad Catz share price has fallen 25 per cent on the news. However, even then Mad Catz ended up having to secure extra funding just to get the game published, and an audit of their finances showed that if the game wasn’t a massive success, the company may have to cease operations altogether.