1076682--1/29/2009--MAJESCO_ENTERTAINMENT

related topics

{product, market, service}

{customer, product, revenue}

{property, intellectual, protect}

{condition, economic, financial}

{stock, price, share}

{operation, international, foreign}

{control, financial, internal}

{acquisition, growth, future}

{stock, price, operating}

{financial, litigation, operation}

{system, service, information}

{product, liability, claim}

If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results. As a result, current and potential stockholders could lose confidence in our financial reporting, which could have a negative impact on our stock price. Our business activities may require additional financing that might not be obtainable on acceptable terms, if at all, which could have a material adverse effect on our financial condition, liquidity and our ability to operate going forward. We may be unable to complete the settlement of our class action and other shareholder litigation. The issuance of stock in connection with our class action settlement will result in dilution to existing stockholders and may cause our stock price to decline. We may not be able to maintain our listing on the Nasdaq Capital Market. Customer accommodations could materially and adversely affect our business, results of operations, financial condition and liquidity. If we do not consistently meet our product development schedules, our operating results will be adversely affected. Increased competition for limited shelf space and promotional support from retailers could affect the success of our business and require us to incur greater expenses to market our products Fluctuations in our quarterly operating results due to seasonality in the interactive entertainment industry and other factors related to our business operations could result in substantial losses to investors. The global economic downturn could result in a reduced demand for our products and increased volatility in our stock price. The loss of any of our key customers could adversely affect our sales. Our international business relies on a primary distributor for a significant portion of our products and the failure of this distributor to perform as expected could materially harm our results of operations. Our financial results are impacted by exchange rate fluctuations. Significant competition in our industry could continue to adversely affect our business. Our business is dependent on the viability of console hardware. Our business is highly dependent on the continued growth of current generation video game platforms and our ability to develop commercially successful products for these platforms. Termination or modification of our agreements with hardware manufacturers, who are also competitors and frequently control the manufacturing of our titles, may adversely affect our business. We may be unable to develop and publish new products if we are unable to secure or maintain relationships with third party video game software developers. If we are unable to maintain or acquire licenses to intellectual property, we may publish fewer titles and our revenue may decline. If we are unable to successfully introduce new products on a timely basis, or anticipate and adapt to rapidly changing technology, including new hardware platform technology, our business may suffer. Our business is hit driven. If we do not deliver hit titles, or if consumers prefer competing products, our sales could suffer. A significant portion of our revenue in 2008 was generated from games based on one licensed franchise. Intellectual property claims may increase our product costs or require us to cease selling affected products, which could adversely affect our earnings and sales. Our intellectual property is vulnerable to misappropriation and infringement which could adversely affect our business prospects. If our products contain defects, our business could be harmed significantly. Rating systems for digital entertainment software, potential legislation and consumer opposition could inhibit sales of our products. Our business is subject to risks generally associated with the entertainment industry, and we may fail to properly assess consumer tastes and preferences, causing product sales to fall short of expectations. We have developed international operations, which may subject us to economic, political, regulatory and other risks.

Full 10-K form ▸

1076682--1/29/2009--MAJESCO_ENTERTAINMENT_CO