Majesco and Midnight City are in dire straits
"We have suffered losses that raise substantial doubt about our ability to continue."
Publisher Majesco and its indie label Midnight City could be facing closure, according to a series of ominous financial reports.
"We have suffered losses that raise substantial doubt about our ability to continue as a going concern," Majesco said of the quarter ending 31st July 2014 in an SEC filing (via Yahoo Finance) posted on 6th November. "Accordingly, 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."
"The reduction includes development and game-testing, selling and marketing, and support personnel. We are currently not developing any significant new games for release in fiscal 2015," the publisher stated.
Another filing revealed that Majesco sold its full stake in social casino studio GMS (thanks, Gamasutra).
Meanwhile, its most recent quarterly report from September revealed an operating loss of $2.3 million.
Majesco's biggest brands over the years have been Cooking Mama and Zumba fitness titles, but the former has nothing in development while the publisher discontinued its relationship with the latter back in January.
These days it's been Midnight City that's been making headlines with the indie label publishing such fan-favourite titles as Costume Quest 2 and the upcoming console port of Gone Home.
Midnight City and Majesco have declined to comment to Eurogamer on the above reports.