Majesco In Money Trouble, Cancels Two Games, Shifts Focus

[FriskyTanuki]

http://igo.ampednews.com/news/3368/

Majesco reported a net revenue of $4.6 million for the fourth quarter of the 2005 fiscal year, compared to $43.5 million produced during the same period in 2004. For the total year, the company posted net revenue of $59.7 million, compared to $121.0 million in fiscal 2004. For reference, these numbers translate to an 89.4 percent decrease on the quarter and 50.7 percent decrease in net revenue on the year. Additionally, Majesco posted an operating loss of $70.2 million, contrasting sharply with 2004’s net income of $16.2 million.

More surprisingly, Majesco aims to “reposition itself” and shift its product strategy away from premium console gaming. “Going forward, Majesco will focus primarily on publishing value and handheld video games,” read the company’s statement.

Majesco expects to cut staff by 20 percent, though it will not see the benefits of restructuring and price reduction until the second quarter, which ends April 30, 2006.

As a result of slashing employee workforce, as well as a shift in focus towards portable gaming, two upcoming titles received the axe – Taxi Driver and Xbox 360 game Demonik. Sale of the two licenses and attempts to recoup development costs netted Majesco an extra $30 million.
Wow, I knew they weren't doing all that well, but barely making 10% of what they did last winter is just horrible. I'm not surprised that they're moving away from the big game development since games like Advent Rising didn't sell well at all, so hopefully the portable and value gaming markets fare them a little better than the premium console market did. What do you guys think of the decline of this troubled publisher? Will they be going the way of Acclaim or will they thrive in their new market strategy?

[Logain8955]

I think Majesco will be able to turn it around. As of late, their best successes were from taking games that appealed to a niche market and releasing them here in the US. GGX2#Reload and Phantom Dust both did exceptionally well if I recall, and if they continue that trend they'll rebuild themselves back up.

[Kapwanil]

I think Majesco will be able to turn it around. As of late, their best successes were from taking games that appealed to a niche market and releasing them here in the US. GGX2#Reload and Phantom Dust both did exceptionally well if I recall, and if they continue that trend they'll rebuild themselves back up.

Honestly, it's one of the reasons why I love the company. The fact that they released Guilty Gear X2 for $20 to start and brought over Phantom Dust was nearly too good to be true. I also picked up Ultra Bust-a-Move and I couldn't be happier, for the most part. They were always good at the niche titles, they really were. I'm hoping that they can pull it back together so they can at least get back to bringing out these lesser-known titles or these "eh, the original company doesn't want to bring it out in the US" games.

That and, seriously, the low MSRPs on a few of them made me buy them immediately. A new, quality game for $20 at release? I'll save a few bucks elsewhere, this is a business strategy I simply have to support.

[Pijaibros]

I am all about niche titles for portable systems! It's what I've been playing in lately since I am not home long enough to enjoy a nice sit down session anymore.

Seeing as how it costs so little time and money to start and finish a title for the GBA and DS platforms (compared to consoles) I think this could prove very well for them. They're already doing GG: Dust Strikers and if Capcom doesn't bring Gyakuten Saiban 4, then these guys can certainly do it instead!

You know, I really wanted to get Ultra Bust-a-Move, but I could not find a copy AT ALL! I was searching for one on release day, too. Guilty Gear X2 and Phantom Dust at bargain prices was pretty ace, as well.

I did do my damndest to get into Phantom Dust however, it's just the skill difference between a noob (me) and the all-stars was like night and day! It turned me off that nobody would really help out and just enjoy slashing my tail all night.

Although, if they want to release a quality, budget title from Japan for a console, they should release Zombie Vs. Ambulance (http://ps2.ign.com/objects/781/781649.html)! This is the best take on the Crazy Taxi style that I have ever seen. It also makes more sense than Crazy Taxi, itself!

[Grave_Addiction]

I really hope Majesco can turn things around. They have been one of my favorite companies this generation. I absolutely loved Phantom Dust, and I can't wait to get my hands on Advent Rising and Raze's Hell when I get back.

[SilverPaw750]

I really hope Majesco can turn things around. They have been one of my favorite companies this generation. I absolutely loved Phantom Dust, and I can't wait to get my hands on Advent Rising and Raze's Hell when I get back.
Raze's Hell is amazing. If you play Co-Op with a friend that is. Get's kind of repetitive otherwise, but it's hilarious, really difficult (which surprised me), and lends itself to a lot of strategy, mainly with ammo conservation and making on player the close range and one the sniper.

For the win: Stayed up playing Raze's Hell co-op till 4:30 AM one night. So much damn fun. :D

[itspaidgasterblaster]

I love Phantom Dust.

[Duo_Maxwell]

I'm kind of pissed they cancelled Demonik. If they could've got it done by the end of Feburary they could've had a decent seller on their hands for those gamers hungry for new (non-sports) 360 games.

[terribledeli]

They shouldnt have wasted time with Advent Rising. Even getting Psyconauts was a stupid move (This is coming from someone who used to watch the e3 2003 trailer constantly) since most console gamers couldn't pick out Tim Schafer from their own brother.

They should stick to releasing budget titles of varying quality.

[niceguyshawne]

They shouldnt have wasted time with Advent Rising. Even getting Psyconauts was a stupid move (This is coming from someone who used to watch the e3 2003 trailer constantly) since most console gamers couldn't pick out Tim Schafer from their own brother.

They should stick to releasing budget titles of varying quality.


As much as I am enjoying Psychonauts right now, I would have to agree with you.

[Roufuss]

http://www.ebgames.com/ebx/product/256073.asp

Here's another Majesco bomb.

[terribledeli]

Was Bloodrayne II 2005? Or 2004?

Majesco get a high five for trying to branch out as a publisher, but yeesh...they really backed some awkward ponies.

[Monsta Mack]

Yeah this really sucks, but as others said, didn't they have success when they released the budgeted GGX:Reload, Raze's Hell and Phantom Dust? As opposed to when they went full monty with Psychonauts and Advent Rising. They should have stayed budget and went for shorter profit, rather then going full blown trying to get $50 titles to sell.

[asianxcore]

isn't Majesco putting out The Darkness for the 360?

[botticus]

They're releasing AOE for DS in a couple weeks, which I will be happily supporting.

[Graystone]

I don't know man 89% and 50% drops really hurt morale and at the same time are great motivators. I hope they can change things around but to me they are more of a boutique publisher. They do few mainstream games. If you look at the games they have done you will see what I mean. nanostray and bustamove for the DS, Aeon Flux, Solider of fortune, bloodrayne 1 & 2 and psychonauts which got high ratings and low sales. I think the thing that might make them come back or help them greatly is a really good mainstream game. They need to ignore us the hardcore, and make a game that is good and appeals to the person who rents whats new or buys whats new and then trades it in a month. Right now sadly mainstream is controlling the industry with the larger selling items look at all of the GTA clones and all of the Street racing Clones. Madden one of the best selling games. I know people who own a PS2 and only have GTA and Madden and they only buy one game a year and thats madden.

[VanillaGorilla]

It's official: Psychonauts killed Majesco.

Seriously though, Majesco is pretty decent. I bought a couple of there games (Psychonauts, UBAM, Raze's Hell), but it looks like they were probably thinking that glorified slideshow Advent Rising was gonna make them a ton of money.

[depascal22]

It's too bad about it all. If Advent Rising had a better camera and lock on system, people might still be playing it now. It didn't help that none of us could win that million either.

[Duo_Maxwell]

isn't Majesco putting out The Darkness for the 360?

Nope they sold it off to another publisher a little while ago I believe. And after canning Demonik I don't think they have any 360 titles planned for quite sometime, which I think is stupid because that's where they could see some success due to somewhat of a lack of competition at the moment.