Mad Catz: accounts in red and dismissal of 37% of staff

After the publication of the financial results for the first nine months of the year of Mad Catz tax showed a worrying deficit accumulated from gaming devices known company, which grew by 439% compared to the previous reference. In recent weeks Mad Catz has reorganized the internal structure of the staff and proceeded to dismiss 37% of its workforce.

As for the past fiscal year, in fact, the deficit stood at about $ 809,000, but in this fiscal year grew up to 4.36 billion dollars. A very important gap in an industry that is characterized by the high production costs of the devices, which often need to be finished with high quality materials.

Most of the losses for the current year tax can be attributed to the disappointing sales of the devices for the music game Rock Band 4, on which Mad Catz had focused heavily. Not only does this situation has reduced the turnover but has simultaneously increased inventory costs for unsold.

Moreover, whereas in the corresponding period last fiscal year Mad Catz could present useful to $ 652,000, now he finds himself with operating losses for $ 82,000. As regards the 9 months under consideration, also, the gross margin is decreased from 26.9 to 17.5%.

Mad Catz now looks forward to the launch of Street Fighter V, which could represent a wonderful opportunity to be able to sell a few more units of its devices for fighting games.