It is bad news days for the industry and two companies have announced they are to lay off staff in a bid to stay afloat.
Peripheral makers Mad Catz have announced cuts of 37 percent of its staff in a company-wide layoff, and company president and CEO Darren Richardson, senior VP of business affairs Whitney Peterson and company chairman Thomas Brown have also resigned. The company is struggling after they pinned their hopes on Rock Band 4 peripherals and they haven’t done great numbers.
Meanwhile developers of the PC and Xbox One MOBA Gigantic, which featured at Microsoft’s E3 show, have also announced “the temporary layoff of a significant percentage of our studio,” as they are low on cash.
“Though we are in active and promising discussions with a number of potential investors, the timing for those negotiations extends beyond the resources we have to maintain the staffing required to continue development on Gigantic,” explains a blog post.
Gigantic is still in beta and the team hope to “continue supporting Gigantic game services for as long as we are able,” although the future of the MOBA is unclear.
Mad Catz execs pinning their business growth on one potential revenue stream is a very risky approach to take. I checked in my Dummies Guide To Business and on page one, third paragraph it states that one should diversify so as to look for revenue from multiple revenue streams and thus minimize risk. D’oh!
They do other peripherals as well. They did do a high level FFB wheel as a forefront project, but it wasn’t that successful and so it seems to have phased out. Some of their other peripherals haven’t done that well either.
Perhaps people just don’t want cheap (or perhaps not so cheap!) crap anymore?