Majesco takes financial blows
Rescently Majesco announced its fourth quarter profits for 2005 and it was no pretty sight. Majesco showed no profits this year infact they showed a massize loss of $70.9 million, the company actually hasnt been profitable at all for the last 2 years they showed losses of over 11-Million for 2004 as well.
Majesco sold out two of its big budget games a few months back (Ghost Rider) and (The Darkness) for a couple Million each. However even with the sales of the two titles to other publishers Majesco really didnt reduce their losses much. Gaming website Gamecloud is also reporting that Majesco has dropped two more of its titles since then (Demonik) and (Taxi Driver). Majesco is cutting its losses everywhere it can.
Many speculate that majesco's losses sprout from the failure of Phsyconauts and Advent Rising both games featured huge budgets and both were expected to be massive blockbusters. However both Phsyconauts and Advent Rising failed to turn a profit.
President of Majesco Jesse Sutton stated "We entered the premium console market with high expectation for success, but as a result of a variety of factors we were not able to meet our expectations." the company is expected to drop all big budget titles and return to itsd roots as a handheld and low budget game company.
The announcements that Majesco has taken such a huge financial blow is nothing new however with Majesco changing its goals from bigger budget Next-Generation titles back to small budget home platform titles and Handheld titles we see yet another great publisher forced to fight for the small market space left.
Lets just hope with Nintendo revolutions low budget developement costs Majesco can return to the fight once again
01-19-2006, 09:54 PM
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