Majesco Entertainment's revenue and income for the first quarter of its 2014 fiscal year both decreased from the same period a year ago, and the company expects to report a loss for the full year, the company announced today.
For the three-month period that ended Jan. 31, Majesco recorded net revenue of $21.9 million, a 7 percent drop from the $23.5 million in revenue it pulled in during the first quarter of fiscal 2013. The company suffered an operating loss of $4.1 million for the quarter — more than twice as much as a year ago — and a net loss of $4.5 million, compared to a net loss of $2.1 million in Q1 2013.
"The transition to next-generation console gaming continues to impact our financial performance," said Jesse Sutton, CEO of Majesco, in an investor release today. "Holiday sales reflect the expected slow build of the casual gaming installed base on the newest console systems."
With well-known franchises like Zumba Fitness, Majesco's bread and butter is the casual audience. Because that market is not as established yet on PlayStation 4 and Xbox One, the company is attempting to bring in alternate revenue streams in the form of GMS Entertainment, its partnership for online casino gaming, and Midnight City, a publishing label for indie titles. Earlier this week, Midnight City announced that it will be publishing Double Fine's Costume Quest 2 and a console version of The Fullbright Company's Gone Home (screenshot above).
"We will build our 2014 release slate with a judicious use of resources and, even though we anticipate a loss for the full fiscal year, we are confident that we have the resources necessary to fund our operations and invest for future growth," said Sutton. Other titles coming from Majesco in 2014 include Cooking Mama 5: Bon Appetit and Gardening Mama 2: Forest Friends, both on Nintendo 3DS.
For more on Midnight City's partnership with Double Fine and The Fullbright Company, check out our interview with the developers.