Malone was a scoring star in Fredericton, New Brunswick, before moving on to the Oshawa Generals of the OHA. After recording consecutive 30-goal seasons, the Pittsburgh Penguins selected him in the second round, 19th overall in the 1976 NHL Entry Draft. He went on to spend the majority of his career with the Penguins followed by three productive years with the Hartford Whalers. Malone was traded from Hartford to the Quebec Nordiques for Wayne Babych but never produced with his new team and retired in 1987. During his career, Malone scored a total of 501 points (191 goals and 310 assists) in 704 career games.
A year after his retirement, then general manager Tony Esposito hired Malone to the Penguins' scouting staff. He won two Stanley Cups with the Penguins in 1991 and 1992 when he was serving as the head scout for the team. Malone was the chief scout for the Penguins until the offseason in 2006, when he became a scout with the Phoenix Coyotes.