Update: Majesco Entertainment Co. Bankruptcy Rumors False

by Ross Miller { Jul 23rd 2005 at 4:24PM }

Earlier today we received and responded to a tip from the site Das Games that stated that Majesco Entertainment Co. had filed for bankruptcy. There is no hard evidence that the rumor is true.

We'd like to point readers to the company's latest SEC filings here. There are official, legally mandated requirements for communicating momentous changes to a public company's financial health so that all investors have equal information. When a public company files for bankruptcy, one can be certain the news will be widely communicated to the entire investing community, and not to some random blog.

Furthermore, a reader claiming to be Ken Gold, VP of Marketing for Majesco Games states that "Majesco is not bankrupt…." Just to be careful, we have contacted Majesco via email to verify the source of the comment and are waiting for a response.

To read the original post, click below.

[The original post]

Sad news for the gaming world, Majesco � purveyors of some of the more creative games (at least here in the states) has rumored to have filed for Chapter 11 Bankruptcy. For those who don�t know, Majesco is the publisher of such games as Psychonauts, Guilty Gear X, Raze�s Hell, Bloodrayne, and a few recent Bomberman / Bust-a-Move sequels. While nothing has been announced on their web site, Das Games is reporting that Majesco Games will make only one more shipment, of Nanostray for the DS, and that will be it for the publisher.

While this is not confirmed, what is certain is that Majesco has seen some troubled times as of recently. Following the weaker sales of Advent Rising and Psychonauts, Majesco had dropped $50 million off of its projected annual revenue. After the announcment, Majesco�s stock plummeted 47%, CEO Carl Yankowski resigned, and now the company (and Yankowski) are being sued by their shareholders (via gameindustry.biz). Tough times.

So it�s still just a rumor, and let�s hope so. And if not, let�s hope other publishers pick up the games Majesco was soon to publish (Black & White for the DS, especially). What are your fondest memories of Majesco games?

[Thanks, Daylon Schindler]

Reader Comments (Page 1 of 1)

Not Impressed (Dmitri) @ Dec 18th 2005 10:08PM

Roflmfao. And I almost bought Nanostray.

kevin @ Dec 18th 2005 10:08PM

I spent all day today looking for a copy of
Nanostray. Couldnt find it at Electronics
Boutique, Gamestop, Walmart, Target, Best Buy
or Toy's R US. I finally had to order the thing
online. Glad I did, ironically I am also playing
Psychonauts on my PC.

Strange a company with so many hi quality games
would go under?

Threnody @ Dec 18th 2005 10:08PM

I got Nanostray yesterday and it's a really kick-ass game. It's really unfortunate that Majesco's forums are filled with people who really want to get the came but can't. I feel really bad for the developers that put so much work into Nanostray and can't get their work into people's hands.

And in this age of EA-everything it's always sad to see another publisher go under.

Mike @ Dec 18th 2005 10:08PM

Psychonauts is among my favorite games. It is truly unique and enjoyable on every level. While I guess any hope of a sequel is down the drain, I'll be sure to play it again a few more times.

Ah well... they had a good run.

Alex @ Dec 18th 2005 10:08PM

Memory - playing countless hours online with Phantom Dust. Great game - but they failed to support it adequately.

Sam @ Dec 18th 2005 10:08PM

Better a publisher than a developer, though.

Jeff @ Dec 18th 2005 10:08PM

Posted Jul 23, 2005, 4:57 PM ET by Not Impressed (Dmitri)

Roflmfao. And I almost bought Nanostray.

---------------------

So why are you a friggin' idiot exactly?

How is a company having financial troubles ROFLMFAO!!!@~ worthy?

And how would that effect your purchase of one of their games?

You're stupid.

No offense.

Ray @ Dec 18th 2005 10:08PM

That sucks. :(

I love Majesco - especially the games they had announced for the DS. Moonlight Fables, Black And White - I hope someone picks them up.

daz @ Dec 18th 2005 10:08PM

Tsk, Majesco should have stayed a private company.

Gabe @ Dec 18th 2005 10:08PM

If you haven't played Psychonauts, go grab a copy, even if its a rental. It's such a fantastic game with so much character, its a shame noone got behind it, marketing or otherwise. I work at a Publisher that passed on Psychonauts when Double Fine was trying to get it released and you gotta hand it to the boys at Majesco for having a pair' and taking a risk. Noone wants to do that in this industry and everyone's afraid to back a big flop, no matter how much they believe in it. With the loss of publishers like Majesco, we can all get excited for a few dozen more The Sims expansion packs, crappy liscensed movie games and Medal of Honor 19: Rambo Assault on an Obscure Asian Country. Sigh.

benhc911 @ Dec 18th 2005 10:08PM

any speculation as to why a stock drop of 47% woudl cause it to go bankrupt? 50 mill off its revenue still leaves more revenue too... I could understand if it was found that they would lose money... but while still making money, who cares if stockholder's interest is down? it will pick up eventually... Anyuway, I'll wait until an official statement is made, but I dont have to worry, in my small community only 20 or so people have a ds tops, and our walmart has atlest 8 copies of the game (nanostray), and since it wont appeal to everyone... I should be able to pick on up.

Zane @ Dec 18th 2005 10:08PM

Well, there were rumors of a class action lawsuit, Psychonauts was selling like crap, stock plummeted, and the CEO quit. Overall, it's not a surprise, but it is very disappointing. I'll be buying Nanostray not only because it's now a pretty rare game, but because I really enjoyed Majeco's games.

bouncicles @ Dec 18th 2005 10:08PM

It's a shame that Majesco is going down the tubes. They did put out their share of crap, but they were one of the few publishers that took chances on games like Psychonauts.

But, their bankruptcy doesn't mean the games they published won't have sequels, or that some of the games in their pipeline won't be picked up by someone else. They're a publisher, not a developer. Shame about Nanostray, though. That one's probably DOA now.

vakerorokero @ Dec 18th 2005 10:08PM

I believe Nintendo should add Double Fine to the developers. I just played Psychonauts last week and It's what Miyamoto should reference for the new Mario.

Chocobot @ Dec 18th 2005 10:08PM

well i think it went something like theyr projected revenue was 23 million dollars, so that actually leaves them at a huge loss.

Elle @ Dec 18th 2005 10:08PM

At Idle Thumbs:

Update (Posted 14:44 EST by Marek Bronstring)
An industry source tells us that while Majesco has reduced shipment numbers for some of its games, they haven't filed for bankruptcy. The company may be in a tough spot financially, but the reports of its death are apparently false.

Ken Gold @ Dec 18th 2005 10:08PM

Majesco is not bankrupt and the fact that Joystiq would put this story up as a headline without verification is unprofessional and unethical. I can not comment further at this time, but please don't believe everything you read. We've got a some great games coming.

Ken Gold
VP Marketing
Majesco

Wes @ Dec 18th 2005 10:08PM

Psychonauts is an amazing game; I'm stuck in it. I pray that this is only a rumor because I love creativity in games and someone who'll take a risk for them.

Michael McGuire @ Dec 18th 2005 10:08PM

You forgot Phantom Dust for the Xbox.

Ross Miller @ Dec 18th 2005 10:08PM

I'm still awaiting a reply from both PR and now Marketing from Majesco, but in my optimism I am going to hope that the above comment really is Ken Golds, and change the post to state that it seems to be an incorrect rumor. The original post, in its entirety, is still viewable if you click on 'Continued reading' (well, if you are viewing comments, then you can see it, so nevermind). I always hoped it was a rumor and stated it as such, and I am glad things are starting to get clarified.

vladimir cole @ Dec 18th 2005 10:08PM

To comment #16 by Ken Gold:

Ken, we're unable to verify from your IP address whether you're who you say you are, but regardless, we've modified the body of this post to be very clear about the validity and source of this rumor.

Thanks for writing in! Feel free to contact me (my personal blog contains my contact info) for additional follow-ups.

- Vlad

NPC @ Dec 18th 2005 10:08PM

WOOHOO! just a rumor! all right!

I was soo worired. I can't wait for alot of DS titles. I love Bust-a-move...

Charch @ Dec 18th 2005 10:08PM

Just another call-out for Psychonaunts, one of the great games of this generation. The MSRP of the game has fallen, making it a great purchase.

If you've ever complained about the lack of originality in today's gaming, here's your opportunity to put your money where your mouth is.

Sam @ Dec 18th 2005 10:08PM

Suddenly, the post "ROFLMFAO. And I almost bought Nanostray" has new meaning.

Arch-360 @ Dec 18th 2005 10:08PM

NOOOOOOOOOOOOOOOOO what happens to the other 2 Advent Rising games?!!?!?!? ahhh i loved that gamest he story was awsome and so was the game!!!

chill @ Dec 18th 2005 10:08PM

Damn, I guess I'll have to give Psychonaunts a try...

Not Impressed (Dmitri) @ Dec 18th 2005 10:08PM

And why the F*** would a VP Marketing from Majesco be on Joystiq? That has got to be the gayest s*** I have ever seen, next to the Flopstation 3 and Flopstation Portable.

vladimir cole @ Dec 18th 2005 10:08PM

Dmitri and others, please keep the comments civil.

Not Impressed (Dmitri) @ Dec 18th 2005 10:08PM

Its kind of hard to when people are so ignorant.

Jason @ Dec 18th 2005 10:08PM

Dmirti...

The fact that you don't think an actual representative from a gaming company would read or post on Joystiq or any other site for that matter...is pretty ignorant.

Not Impressed (Dmitri) @ Dec 18th 2005 10:08PM

I did not say I didn't think they would. I just think it is messed up that they would. They should not care what some 2 bit site has to say.

Ross Miller @ Dec 18th 2005 10:08PM

Hey now, we are AT LEAST 3 bit, maybe even 4 bit. 16-bit? Ehh, I'd have to ask the overhead, but we are definitely beyond 2-bit. :)

Snow @ Dec 18th 2005 10:08PM

psychonauts is an awesome game, i am absolutly hooked on it for the ps2 (along with ratchet and clank up your arsenal)

thank god this is just a rumor

Not Impressed (Dmitri) @ Dec 18th 2005 10:08PM

Yea. I am happy this came with an update, because if it is in fake a lie. Then I would not be suprised if I went out and bought Nanostray. It is interesting this news came so close to the release of it, maybe it is some idea to get sales?

Not Impressed (Dmitri) @ Dec 18th 2005 10:08PM

Either that or some kid made it up because he found out that Nanostray shipments would be limited, and he didn't want people to expect to get it.

The Jeremy @ Dec 18th 2005 10:08PM

I'm surprised nobody mentioned any speculation about the financial rumor and the fact that the "Advent Rising" $1 million promotion has been suspended, apparently due to some glitch with Xbox Live. I would make a recommendation though, make sure the retailers carrying the game also actually stock the hint manual. Sure, that's done by Brady Games, but royalties are royalties. Not one Best Buy I've been in recently had the guide in stock.