PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION

12 Months Ended

Oct. 31, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation Of Financial Statements Disclosure [Text Block]

1.  PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION

The accompanying financial statements present the financial results of Majesco Entertainment Company and Majesco Europe Limited, its wholly owned subsidiary, (“Majesco” or “the Company”) on a consolidated basis.

The Company is a provider of video game products primarily for the mass-market consumer. It sells its products primarily to large retail chains, specialty retail stores, and distributors. It publishes video games for major current generation interactive entertainment hardware platforms, including Nintendo’s DS, 3DS and Wii, Sony’s PlayStation 3, or PS3, and PlayStation Portable, or PSP^®, Microsoft’s Xbox 360 and the personal computer, or PC. It also publishes games for digital platforms, including mobile platforms like the iPhone and iPad, as well as online platforms such as Facebook and Zynga.

The Company’s video game titles are targeted at various demographics at a range of price points. Due to the larger budget requirements for developing and marketing premium console titles for core gamers, it focuses on publishing more casual games targeting mass-market consumers. In some instances, its titles are based on licenses of well-known properties and, in other cases based on original properties. The Company enters into agreements with content providers and video game development studios for the creation of its video games.

The Company’s operations involve similar products and customers worldwide. These products are developed and sold domestically and internationally. The Company may also enter into agreements with licensees, particularly for sales of its products internationally. The Company is centrally managed and its chief operating decision makers, the chief executive and other officers, use consolidated and other financial information supplemented by sales information by product category, major product title and platform for making operational decisions and assessing financial performance. Accordingly, the Company operates in a single segment.

Geographic regions

Net revenues by geographic region were as follows:

	Years Ended October 31,
	2012		%			2011		%			2010		%
United States	$	103,457		78.2	%	$	110,115		87.9	%	$	73,817		97.6	%
Europe		28,830		21.8	%		15,176		12.1	%		1,831		2.4	%
Total	$	132,287		100.0	%	$	125,291		100.0	%	$	75,648		100.0	%

Major customers

Sales to Wal-Mart, Inc. represented approximately 18%,18% and 20% of net revenues in 2012, 2011 and 2010, respectively. Sales to GameStop represented approximately 11%, 21% and 12% of net revenues in 2012, 2011 and 2010, respectively. Sales to Best Buy represented approximately 11% and 10% of sales in 2011 and 2010, respectively. Sales to Target represented approximately 11%, 10% and 10% of sales in 2012, 2011 and 2010, respectively. Sales to Cokem represented approximately 20% of sales in 2010. Revenue from 505 Games s.r.l, primarily reflecting revenue from Europe, represented approximately 22% and 11% of sales in 2012 and 2011, respectively.

Concentrations.  The Company develops and distributes video game software for proprietary platforms under licenses from Nintendo, Sony and Microsoft, which must be periodically renewed. The Company’s agreements with these manufacturers also grant them certain control over the supply and manufacturing of the Company’s products. In addition, for the years ended October 31, 2012, 2011 and 2010 sales of the Company’s Zumba Fitness games accounted for approximately 76%, 70% and 0% of revenue, respectively. We license the rights to publish these games from a third party and have rights to publish other Zumba Fitness games. If the new versions are not successful, this may have a significant impact on our future revenues.