As recently as last month, peripheral maker Mad Catz, who are manufacturing the instruments for Rock Band 4, were unable to pay credit lender Wells Fargo the necessary amount of money. Wells Fargo had every right to call in its loan, which could have led to the closing of Mad Catz, but instead cancelled their previous agreement and entered a new contract lasting until July 31st, 2016.
The new funding amounts to $30 million, split in two pieces. One part is a line of credit amounting to $20 million, which will increase to $35 million between September and December needed to ship Rock Band 4. The other $10 million is secured funding for Mad Catz Europe.
Despite this, if Rock Band does not do as well as they are hoping, Mad Catz may have no choice but to close as it relies very heavily on “significant contributions from anticipated sales of products related to the Rock Band 4 video game.”
Worrying news indeed, not just for Mad Catz but for Rock Band 4 also since Mad Catz are the Co-Publishers and peripheral makers. If Mad Catz fall through, Rock Band itself should be fine, but it might be tough to get instruments if they do. Hopefully everything works out. What are your thoughts? let us know in the comments!