Rock Band 4 turns Mad Catz earnings into $11.6 million loss

Co-publishing deal with Harmonix was 'incredibly disappointing.'

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Rock Band 4 was a good game, but sales were tepid. So much so that publisher Mad Catz' quarterly earning report in February began with the layoff of 37% of its workforce and the resignations of several key executives. The yearly financials for the company are now out, and the numbers still aren't pretty.

For fiscal year 2015, Mad Catz showing a profit of $4.7 million. However, this fiscal year ended with an $11.6 million loss. This despite that fact that earnings were supposedly up 55 percent. Mad Catz CEO Karen McGinnis said the company incurred about $6.8 million in charges in the final quarter because it had to write down and discount so many copies of the game with retailers.

Rock Band 4 developer Harmonix ended its co-publishing deal with Mad Catz to team up with PDP, but Mad Catz still retains about $8.3 million in RB4 inventory, which needs to be sold before September 16 of this year. McGinnis said the end of the deal was good for Mad Catz because Harmonix's future plans would have require the company to "invest additional development resources and tooling to design new hardware."  

McGinnis added that  has other things in the works to try to rebound from the poor musical arrangement. "Although the overall Rock Band 4 program was incredibly disappointing for us, exiting the relationship with Harmonix at this time allows us to focus our efforts on the development and execution of our other exciting and profitable product launches."

In the meantime, Harmonix continues to pump out DLC for Rock Band 4 on Xbox One and PS4, but it recently failed to crowdfund a PC version of the game.

Contributing Editor
From The Chatty
  • reply
    June 3, 2016 8:05 AM

    John Keefer posted a new article, Rock Band 4 turns Mad Catz earnings into $11.6 million loss

    • reply
      June 3, 2016 8:13 AM

      Ouch :(

      Wasn't mad catz already in a deep hole? This could be the end times.

    • reply
      June 3, 2016 8:40 AM

      wow..... that sucks.

    • reply
      June 3, 2016 8:42 AM

      Yikes.

    • reply
      June 3, 2016 8:47 AM

      Yeeouch.

    • reply
      June 3, 2016 8:52 AM

      Buy an arcade stick before they go our of business!

      • reply
        June 3, 2016 12:03 PM

        (Pray you don't need warranty support)

        • reply
          June 3, 2016 4:04 PM

          TE sticks use arcade cabinet components that are pretty to order and swap out.

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          June 3, 2016 4:32 PM

          Their sticks are designed to be modded. They open with a hex driver and use basic sanwa parts, etc.

    • reply
      June 3, 2016 10:18 AM

      Why couldn't they make one controller that would work with all the systems?

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        June 3, 2016 10:25 AM

        Likely some underlying patent issues. Outside of Chinese dongles and Genesis controllers plugging into Atari 2600s, I don't think I've ever seen a cross-compatible controller for any system.

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          June 3, 2016 11:15 AM

          You can use a MooCube controller on a PorpStation 3000

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        June 3, 2016 12:17 PM

        Because different consoles connect differently. PS4 uses Bluetooth, XB1 uses WiFi Direct.

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        June 3, 2016 12:28 PM

        They did the last time around. This time, guitar hero changed their game. It plays differently to where the rock band controller simply cant do what the game needs.

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      June 3, 2016 11:27 AM

      Whoda thought that the ship had sailed on the plastic instrument wagon. Not Mad Catz I guess!

    • reply
      June 3, 2016 2:40 PM

      Neither RB4 or GH whatever seemed very affordable. I played the hell out of GH1 and 2, but burned out after that. I would have been interested in revisiting the series on the new consoles, but the idea of getting roped into paid content made the whole thing seem really unappealing.

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      June 3, 2016 2:45 PM

      Could never buy the stuff in Poland, not sad at all

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      June 3, 2016 2:49 PM

      They fucked up on this stupid bullshit hardware thing again. I'm super disappointed I bought Rock Band 4.

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      June 3, 2016 4:49 PM

      It's a bummer but man that type of rhythm game died HARD. I wonder what'll happen with that Oculus version.

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