Revenues for the fiscal first quarter were $7.9 million, compared to $13.1 million in the prior year's fiscal first quarter. The Company reported a net loss of $26.3million, or a loss of $0.71 per share for the fiscal first quarter, compared to a loss of $6.8 million, or $0.26 per share in the same quarter last year.

``As expected, our revenue declined due to shortages of Sony hardware, industry pricing pressure and the delay in the release of Army Men Air Attack(TM) for the
Nintendo 64 game system, which was shipped earlier this month,'' stated Trip Hawkins, chairman and chief executive officer. ``Operating expenses grew in line withexpectations as we increased research and development capacity to support the development of 45 titles on fiveplatforms, expanded our presence in European markets, and continued to increase brand exposure through advertising.'' (PRNewswire)


In short 3DO kill Meridian 59 and look what happened to profits :-)
(althought cancelling Meridian 59 actually decreased this loss I won't tell ya that)

Source: PRNewswire - unknown