Majesco is facing some fairly significant financial woes, according to a filing to the SEC (Securities and Exchange Commission). In the statement on November 6, 2014, Majesco had this to say:
“On October 31, 2014, 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. . . . [W]e 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.”
Coming out of a dissolved partnership with Zumba on their flagship Zumba fitness games, the future does not look good for Majesco. If Gamasutra’s news on potential trouble with their indie publishing wing, Midnight City, is accurate, that could be an unrecoverable blow to Majesco’s finances.
Of particular note, the fact that Majesco is not currently in development of “any new significant” games raises concern, as the life blood of any company, not just game developers, is what new product is coming down the pike.
In a second filing on November 12, Majesco revealed that the company has sold its full stake in social casino studio GMS Entertainment.
Given that Majesco has sold all its stakes in the company to a primarily casino based outlet, the potential future of Majesco’s popular Cooking Mama franchise has been seriously called into question.