Death Of A Game Publisher

[NovaXpress]

Majesco Learns A hard Lesson

If you don't read Chris Morris' columns, let me say that it's usually good stuff. He's also been uncanny at predicting release dates and retail prices. He researches from a financial perspective with information aimed at real investors, so you don't get the same bullshit that you get from game sources. Anyway . . .

the potential for real growth seemed most apparent going into 2005. In Majesco's catalog were "Advent Rising," (the first in a planned action trilogy), "Psychonauts" (which sprang from the mind of Tim Schafer, one of the industry's most talented developers) and several film licenses, including "Taxi Driver".

 

As the year ended, though, things were anything but rosy. Majesco (Research) last week announced dreadful fourth quarter and year-end numbers. Net revenue in 4Q 2005 (traditionally the biggest quarter of the year for game publishers) was just $4.6 million, compared to $45.3 million the previous year. Twenty percent of the company's staff was laid off.

 

Majesco had had enough. It announced plans to abandon the premium console market.

Majesco tried to grab a piece of everything but couldn't score a hit big enough to make it work. And when the discussion is on endangered video game companies, you know who's gonna get a mention . . .

There haven't been a lot of happy endings for publishers who begin to spiral. Midway has pulled itself back from the brink of death thanks to a substantial cash infusion from Sumner Redstone over the past several years. Atari, meanwhile, continues to hover on life support. And in 2004 Acclaim Entertainment shut its doors, filing Chapter 7 bankruptcy.

[MCHufnagel]

It's really too bad. I liked Psychonauts a lot and I just can't understand why it didn't sell very well. I didn't play Advent Rising and I read mixed reviews about it. Majesco games have always been a mixed bag, but they sold at a low price until they tried to go "upscale".

 

History shows that once a game publisher sinks to a certain level, it just doesn't recover. Midway is the exception to the rule. Majesco doesn't have the history of Atari. If it goes, there won't be anyone to pick up the pieces.

[sega saturn x]

I just hope jaws unleashed doesn't suffer the same fate as acclaims redstar. It's a damn shame to sicne I really like majesco, I give them a lot of credit for tryingsome new things. And for actually putting out a shooter in this day and age.