Majesco (Nasdaq: COOL) shares plunge on weak outlook

Palm Beach. FL 1/18/12 (StreetBeat) -- Majesco Entertainment Co's (Nasdaq: COOL) shares fell as much as 30 percent after the video game publisher forecast a weak 2012 as it expects higher selling and marketing costs.

The company expects the costs, primarily related to the launch of its new Zumba title -- Zumba Rush -- for Microsoft's (Nasdaq: MSFT) Xbox 360 Kinect, to grow by about 20 percent this year.

The "Zumba Fitness" game, launched in 2010 and based on motion-sensing technology, has sold more than 6 million copies worldwide and continues to be one of the top-ranked games in the United States and the United Kingdom. It contributes about 70 percent to Majesco's revenue.

Shares of the Edison, New Jersey-based company were down 26 percent at $2.20 in early trade. They touched a more than three-month low of $2.10 earlier in the session. The stock was the top loser on the Nasdaq.

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