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Majesco Struggling, "Not Developing Any Significant New Games For Release In Fiscal 2015"
Majesco Entertainment has been publishing games for nearly 30 years, but a recent SEC filing paints a questionable future for the company.
Gamasutra reports sources within the company have confirmed it is experiencing problems, and a report filed with the Securities and Exchange Commission on November 6 showcases a reduction in workforce, as well as the possibility of the sale or merger of the company.
We implemented a reduction of our workforce to reduce our fixed costs. The reduction includes development and game-testing, selling and marketing, and support personnel. We are currently not developing any significant new games for release in fiscal 2015.
We have suffered losses that raise substantial doubt about our ability to continue as a going concern. Accordingly, we are evaluating various alternatives, including reducing operating expenses and personnel costs, securing additional financing for future business activities, and other strategic alternatives including a sale or merger of our company.
Earlier this year, Majesco was in danger of being delisted from NASDAQ for the third time since 2008. The company performed a reverse stock split, but it appears the tactic may not have helped. In September, Majesco reported its third quarter fiscal 2014 financial results revealing a loss of an operating loss of $2.3 million.
Majesco found success with the Cooking Mama and Zumba series of games, but also lost on big bets like Advent Rising and Psychonauts. Midnight City, Majesco's independent publishing arm, recently published Costume Quest 2 for developer Double Fine, and is bringing Gone Home to Wii U. Midnight City will likely be affected by the financial issues currently affecting Majesco.
[Source: Gamasutra, Securities and Exchange Commission, Majesco]
Our Take
Nothing is set in stone, but Majesco's future does not look bright following this report. The company has taken some big dangerous bets over the years, and has been trying something interesting and different with its Midnight City publishing arm, but I fear for the company's future. I wouldn't miss the Zumba or Cooking Mama games, but Majesco has also had its hand in a lot of good, experimental games (like Psychonauts) over the years.
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