Majesco's future in 'substantial doubt'

Firm 'not developing any significant new games for release in fiscal 2015'
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Games publisher Majesco is struggling to stay afloat and has warned that recent losses have raised substantial doubt on its ability to continue operating.

An SEC filing states the company laid off staff in development, game testing, marketing and support roles on October 31st. It also said the firm is currently “not developing any significant new games for release in fiscal 2015”.

One-off payments relating to redundancies are expected to result in a $300,000 to $400,000 loss through to December 31st.

“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,” read a statement.

Gamasutra has also spoken with sources within the company about the situation, who confirmed there had been layoffs. It was also suggested Majesco’s indie publishing label Midnight City is also in trouble.

The news comes after a difficult year for the publisher, which reported an operating loss of $2.3m during the quarter ending July 31st. In January the publisher also dropped its license for its signature franchise, Zumba Fitness.

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