Third party accessory producer, Mad Catz has told its investors that they are looking for Rock Band 4 to reduce their debts, and stabilize the company. Rock Band 4 is planned to arrive this fall, and will be distributed by Mad Catz, alongside the help of publisher, Harmonix. The company hopes that game’s sales, and the sales of accessories as a resultant, will help secure the company’s financial situation.
“The Company depends upon the availability of capital under the Credit Facility to finance operations. Compliance with the Adjusted EBITDA covenants in fiscal 2016, which are tied closely to our internal forecasts and include significant contributions from anticipated sales of products related to the Rock Band 4 video game, depends on the Company’s ability to increase net sales and gross profit considerably.”
“These uncertainties raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.”
Last month Mad Catz failed to bring in the money to meet agreements made with US bank, Wells Fargo. At this point, it was possible for the bank to call in their loan, and demand the money immediately. After lengthy discussions, the credit lender reportedly gave the company $35 million to ship Rock Band 4, until the end of July 2016. If the title does not receive the sales they hope, Mad Catz could cease to exist, however the company will suffer, regardless what happens. Since 2011 the company has been run at a loss, therefore a change must happen soon for Mad Catz to still operate in the foreseeable future.
Chief financial officer, Karen McGinnis has stated that the reality is not as negative as proposed, and language used is due to the formatting and vocabulary found in financial documents.
Source: Game Informer
Matt was a regular ICXM contributor in 2015, publishing 110 articles across game reviews, Windows and PC, and Xbox news. Their work focused on hands-on reviews, platform commentary, and breaking-news reporting during the Xbox One’s first full year of post-launch coverage, including the early days of Backwards Compatibility and Windows 10 gaming. They post on X as @RTEnvi.