Mad Catz files for Chapter 7 bankruptcy and shuts down

Gaming peripheral company Mad Catz is finally closing after filing for bankruptcy. As of yesterday, March 30, the company shut down and is now selling off its assets. Polygon notes that the company filed for Chapter 7 bankruptcy rather than Chapter 11, meaning that it does not intend to restructure and will liquidate its assets.

To anyone paying attention, this isn't a surprise. The company has been having trouble for some time, following a failed investment in game developer Harmonix's attempt to revive its Rock Band license. Mad Catz co-published the game with Harmonix, and designed and produced its plastic instruments. The company said it needed the game to succeed, and that never happened. That failure was followed by the company laying off over a third of its employees, and its CEO and chairman both resigning. This latest move is a result of its board of directors voting to cease operations.

Mad Catz has a long history with the gaming community that reaches all the way back to 1989. Over time, the company had developed a reputation for producing subpar third-party controllers and other peripherals, and that reputation stayed with Mad Catz even as it went through multiple changes. Despite that reputation, the company found a strong path in the fighting game community, producing high-end arcade fighting sticks that have remained popular within those circles. With the company selling off its assets, its possible another vendor like peripheral maker PDP (who now makes the Rock Band controllers) could pick up Mad Catz's place in the fighting game community and continue that strong relationship.

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