Majesco losses widen

Success of Cooking Mama can't help budget publisher as sliding financials cause shares to tumble in after-hours trading.

Majesco Entertainment wants to be a turnaround story. After a failed bid to become a major publisher of AAA retail games, the publisher circled its wagons, selling off high-profile projects like Ghost Rider and The Darkness in order to pursue the lower-risk, lower-reward world of mass-market casual game publishing. That initiative trimmed the company's losses for a time, and the success of Cooking Mama for the DS certainly seemed like positive indicators for the publisher.

However, today Majesco released its results from its fiscal third quarter (the three months ended July 31), and the figures showed sliding revenues and rising losses over the same quarter the year before. Revenues were down from $12.4 million to $10 million, while the company doubled net losses from $724,000 to $1.5 million. The revenue shortfall was explained by pointing out that last year's third quarter featured the release of Jaws Unleashed, while this year's quarterly release schedule was light. Another factor hurting the company's bottom line was $2.5 million connected to an expected settlement of a class-action lawsuit brought against it by shareholders.

Majesco also bumped down its projections for its full fiscal year, to the range of $50 million to $53 million, down from $56 million to $59 million. The main reasons given for the downgrade were lowered expectations for its new releases, and the delay of Blast Works: Build, Fuse, and Destroy into its first fiscal quarter of 2008 (the three months ended January 31, 2008). Originally set for a fourth fiscal quarter release, Blast Works is a revamped Wii edition of the PC freeware game Tumiki Fighters, and will include support for online features like sharing customized ships and high scores with friends.

The news isn't being welcomed by Wall Street, as Majesco shares are down sharply in after-hours trading. As of press time, Majesco stock was selling for $1.60, down more than 15 percent from its $1.89 close.

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26 comments
e-racer22
e-racer22

Too bad, course I can't say I've bought any of their titles recently. Psychonauts was a blast, but performed poorly at retail. Bloodrayne .. eh. Then they sold off some of their high-profile IPs. They either need to publish a lot of shovelware and hope volume will get sales or try and resurrect a successful IP. Sorry, but I'm not really interested in a console verson of a game I can play for free on my PC.

icarus212001
icarus212001

cooking mama made me hungry...mmmm foooood

FidelSarcastro
FidelSarcastro

It comes as no shock to see that Majesco is going belly up. For the last few years thing have gone from bad to worse for them. Between pulling the plug on their Next Gen devision, being pulled off the stock exchange several times for not sticking to the guidelines of posting their quarterly profits on time, playing musical chairs with their corporate heads and getting sued by their own stockholders Majesco might as well just call it quits. Now I could be all poor majesco but I have no pity for their situation, they didn't have to be in this situation, they have or had some good licenses. Between psychohauts, Bloodrayne, Jaws and Demonik to name a few they could have turned all that red they are seeing on their records into green. Instead they are just making small potatoes games for gameboy advanced. Give it a few years and Majesco will become a cautionary tale of loss that will become part of the language of the gaming industry "Oh bill have you heard about that new outfit out in san francisco?" "Yea Ted, they better watch out before they pull a Majesco"

anamnawshad
anamnawshad

Fools! Darkness and Ghost Rider made a lot of money. Too bad Majesco missed them......

Simsyas
Simsyas

It's their fault for only having access to games no one gives a poop about. They should just merge with Atari or something, they're right up their level.

jenova
jenova

Bloodrayne 3, plz. None of that casual gaming crap. And they sold the Darkness? Slick move.

hardyz
hardyz

If Majesco Entertainment can turn things around for themselves, I would at least like to see a next-gen BloodRayne if not anything else.

Nxss-effa-sim
Nxss-effa-sim

If I had a little money and some financial backers from Blackstone, I could turn Majesco around in a heartbeat. That would be an ideal job for me.

nuttysack
nuttysack

Please hang in there! I'm not to familiar with whats going on but maybe if someone came along and bought them, NOT EA but some one else,,,could keep them making awesome games.

DevilD2005
DevilD2005

Its a shame that this is happening considering the praises for the Darkness and other games they did a good job doing. Im hoping they can bounce back.

MasterTheHero
MasterTheHero

Take risks to gain money? I'm sorry but that comment struck me as completely off, simply because of one company. E-A EA isn't exactly known for "taking risks" need I list all the Maddens, Battlefields, Medal of Honors, as proof of non risk development? They have been developing and producing nothing but non stop sequels which don't really change the core formulas on the game much, and they are still making tons of money as we stupidly pay for them. What is "Needed" to survive in this business is to take risks ONCE in a while. But the most important thing is to have a franchise with which you can dip into in order to make a profit. I.E. Rockstar uses the Grand Theft Auto games to boost their funds and then take on riskier projects on the side. Majesco needed a more quality line up in order to keep up with the big dogs, and needs to recognize which games to support and which to drop.

Demmi_Argo
Demmi_Argo

Majesco is heading straight for bankrupcy at this point. In business you have to take risks to gain money, if they still had the darkness then they probably wouldn't be facing this situation. No pain, no gain.

gmrndlze
gmrndlze

cooking mama wasn't that good

HarlockJC
HarlockJC moderator

Nintendo should buy them out before they lose Cooking Mama to the PSP

sphinx-shadow
sphinx-shadow

maybe they should make sequel to Psychonauts if they still have the rights.

Sagacious_Tien
Sagacious_Tien

Work on Nintendo DS and Wii I suppose. They seem to have a decent catalogue of titles as well, perhaps they can work on some downloadable arcade titles?

sprinter24
sprinter24

They tried their best and failed.

SergeStorms
SergeStorms

Looks like Majesco is circling the drain. I bet it's last properties get sold off by this time next year.

cytheh
cytheh

cmon, get another blood Rayne before it close

The_AI
The_AI

Majesco is on a fast track to oblivion. WOOT FIRST