German software producer Magix, the producer of Vegas Pro which is based in Berlin but also operates subsidiaries in the USA and Canada, has filed for insolvency. According to their press release, the company comprising 200 employees, intends to sustain their operations until a new investor is secured. They aim to finalize a deal within the next two to three months. Sinking revenue due to complex portfolio Magix, which is known mostly for their Magix Video deluxe and VEGAS Pro NLE applications (which it bought from Sony in 2016), as well as their Music Maker software, has reported that revenue fell dramatically from thirty-two million Euros in 2021 to twenty million Euros in 2023. A complex product portfolio in the last years has mostly been blamed – this has led to confusion amongst customers. Magix offered four versions of Video deluxe, three of Vegas Pro, and two of Magix Video Pro. These were priced from €60 to €400 and offered vastly different sets of functionalities. The user interface of the latest version of Vegas Pro – Image credit: Magix This complex portfolio not only confused customers but also led to problems in product development, harming core products and their features. The company also blamed the slow adaptation of cost structure and a failure to use modern e-commerce methods for their problems. It has announced restructuring measures – which usually means layoff of personnel – in the near future. Focus on Vegas Now the company wants to focus on Vegas, although...
Published By: CineD - Thursday, 14 March, 2024