Publisher laying off staff, considering a sale or merger
[Update: According to anonymous sources familiar with the situation at Majesco, things are indeed pretty bleak for the company.
Our contacts confirmed a reduction in staff at Majesco and Midnight City, adding any attempts to get in contact with the publisher have been difficult or impossible in recent months. One source said Majesco has essentially gone dark, and those looking for updates on the situation find the company and its leadership to be increasingly reclusive.
Majesco didn’t respond to Destructoid’s multiple requests for comment.]
Majesco, the publisher behind Cooking Mama and Zumba Fitness, appears to be in dire straits. On November 6, Majesco reported layoffs to the Securities and Exchange Commission:
“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,” the statement continues. “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.”
The company has also sold its stake in online casino business GMS Entertainment.
Gamasutra spoke with a recently laid-off Majesco staffer that confirmed the situation, and also reports trouble at Midnight City, Majesco’s indie publishing label, which has plans to distribute titles like High Strangeness and a Wii U port of Gone Home.
The company was nearly delisted from the NASDAQ stock exchange earlier this year, but managed to buy itself a little time via a reverse stock split.
Destructoid has reached out to Majesco and its partners for comment.
Majesco and its indie label Midnight City in serious trouble [Gamasutra]
Published: Nov 18, 2014 10:30 am