Majesco pulls out of physical retail

Publisher Majesco has decided to exit physical retail and instead is focusing its efforts on the digital download market.

That’s according to a public letter to shareholders from CEO and co-founder Jesse Sutton.

In its efforts to focus on the digital market, the firm has also dramatically reduced its headcount. Majesco now just has five full-time employees.

Its upcoming titles include Glue, and A Boy and His Blob.

In addition, the firm predicts it will break even in future quarters. For the last quarter, the firm has $8.5m in cash, as well as $9m in escrow.

We have taken significant steps to repurpose our assets and significantly reduce our liabilities that were established solely to support our presence as a distributor of retail games for systems sold by Microsoft, Sony and others,” Sutton said.

Now that we have elected to exit from that channel, these liabilities and the costs associated with retail products have diminished.”

The firm has been in trouble for some time. At the start of 2014, the firm reported a significant decline in annual revenue, and planned a reverse stock split to avoid delisting. Then at the end of last year, the firm announced that its future was in doubt.

The company says it is confident in its restructure, although it’s to be seen what it can in the competitive digital marketplace with just five full-time staff.