Amidst their not-as-dismal-as-last-year's Q3 earnings report, Edison, NJ-based Majesco announced their intentions to support Nintendo's Wii console, which they consider in line with their revamped strategy to give up the glitz and glamor of AAA titles in favor of budget software publishing. Following last year's Q3 loss of $37.5mln, this Q3's net loss of $724,000 barely registers on the meter. So the question Majesco has to answer is, if people won't buy Advent Rising or Psychonauts, what will they buy? How about Bust-a-Move Revolution, an update of the popular bubble popping series coming to the Wii early 2007. They've been buying it for years, what's to stop them for doing so again (now with more bubbles!)
How's their revised strategy working out thus far? In his analysis of Majesco's earnings report, Wedbush Morgan Securities' Michael Pachter writes, "Although the results posted the last three quarters show significant progress, Majesco still is short of cash and may face an uphill battle in its return to profitability. We believe that there is potential for further improvement in revenues, and should the company be able to maintain its current cost structure, we believe it is possible that it will return to profitability sometime next year." Just so long as they don't release any more JAWS Unleashed games. We don't care if it did experience stronger than expected sales.
The Majesco affair:
- Majesco on ropes, investor threatens hostile takeover
- Majesco sells off The Darkness and Ghost Rider licenses
- Majesco cancels Taxi Driver and Demonik; moves to only sell budget and handheld games in the future
- More on Majesco's fall from grace
- Majesco may not go belly up after all!