Join us! Nintendo Enthusiast Forums
dark        

Majesco, Midnight City in financial peril (Update)

0

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]

You are logged out. Login | Sign up

 
 

 

TwitterRedditEmailFacebook
 
Kyle MacGregor Burleson
Kyle MacGregor BurlesonWeekend Editor   gamer profile

used to work Now I just hang around and make a more + disclosures


 


 



Filed under... #Industry Bull #Majesco #Midnight City #Money

READER COMMENTS LOADING BELOW...


LET'S KEEP THE COMMUNITY GREAT


You're not expected to always agree, but do please keep cool and never make it personal. Report harassment, spam, and hate speech to our community team. Also, on the right side of a comment you can flag nasty comments anonymously (we ban users dishing bad karma). For everything else, contact us!