Rock Band 4 guitar bundle sales lower than forecast

Rock Band 4 guitar bundle sales lower than forecast
James Orry Updated on by

Video Gamer is reader-supported. When you buy through links on our site, we may earn an affiliate commission. Prices subject to change. Learn more

Rock Band 4 helped Mad Catz achieve its second highest third quarter fiscal 2016 sales in the company’s history, although the music game failed to meet forecasts.

During an overnight call with investors newly appointed president and CEO Karen McGinnis said: “We’re pleased that sales in the third quarter of fiscal 2016 were the second highest in the company’s history as a result of a Strong Rock Band 4 sales which were partially offset by continuing softness and sales of our audio and PC gaming products. The successful launch of Rock Band 4 this holiday season was a considerable achievement for Mad Catz and it demonstrates the capability of our distribution platform.”

McGinnis continued: “Sales of Rock Band 4 products were very strong in September and October as retailers stock their inventory ahead of the games launch and to accommodate Black Friday demands. We had ample retail inventory coverage of guitar bundles at launch with consistent ongoing shipments to replenish retail sell through.”

“Post-launch we were able to catch up to Band-in-the-Box bundle demand with consistent weekly shipments to retailers.”

Despite all this positivity, sales were not as high as had been hoped, with McGinnis putting the blame on the low pricing of Activision’s Guitar Hero Live.

“Unfortunately retail sales through bundles particularly the guitar bundle was lower than we forecasted partly due to an aggressively priced competitor product,” McGinnis explained. “This forced us to be more aggressive with price promotions throughout the holiday season significantly lowering our margins. However our strategy in concert with Harmonix, the game developer is to position Rock Band 4 as the platform production for this generation of consoles adding new features and new gameplay over time. We’re intent on playing the long game with Rock Band 4 and making this exciting products, a long term sales opportunity. Our retail partners were pleased with Rock Band 4 and our planning to continue to carry the product throughout 2016 as well as the 2016 holiday season.”

McGinnis also pointed to “weak” market demand in Europe, which contrasted with the game’s “very strong” sales in North America.

Source: Mad Catz Investor Relations via Seeking Alpha