The redheaded vamp slinks toward her prey with a wicked fang-revealing smirk. As Rayne, the curvaceous and deadly star of the hit video game series "BloodRayne," the half-vampire creature has helped put Majesco Holdings of Edison on the premium action-game map.

Majesco needs all the help it can get in its battle for a growing share of the $6.2 billion U.S. video game industry. With just 79 employees, the company is dwarfed by giant game publishers such as Microsoft, Take 2 Interactive or Electronic Arts.

But although it is small, Majesco is feisty. The company publishes games for all three major home-video platforms-Sony's PlayStation 2, Microsoft's Xbox and Nintendo's GameCube and Game Boy-and has recently been signing deals and developing products at a furious pace. Last year it brought out "DragonBall GT," "Guilty Gear X2 #Reload" and "BloodRayne 2."

This year it plans to launch "Advent Rising," the first of a proposed trilogy of science fiction adventure games. Also on tap is a live-action film based on "BloodRayne" that is currently in post-production. Next year Majesco plans to roll out a video game adaptation of the popular comic book series "The Darkness," which features a Mafia hitman possessed by a mystical power.

At the same time, Majesco seeks to position itself as a digital entertainment company that offers more than video games. It sells videos based on characters like SpongeBob SquarePants that can be played on the Nintendo GameBoy Advance handheld video system. In addition, Majesco makes products like wrap-around headphones for the GameBoy Advance.

Jay Horwitz of Jupiter Research in New York City says the cost of developing video games and delivering them to consumers rises with each new generation of gaming systems like PlayStation 2 and Xbox. "That does make it more difficult for smaller and midsize publishers to compete in the market," Horwitz says.

Established companies with bestselling games also wield great clout with retailers and can crowd out titles from smaller publishers in the competition for scarce shelf space. "When you look over the course of the year, the top 10 titles are pretty much dominated by established franchises and sequels to games," says Horwitz.

Despite that caution, Horwitz says it's possible for midsize publishers like Majesco to succeed in the industry. "It's definitely doable; the question is how you fit in and how you are able to control your cost," he says.

Majesco Chairman and CEO Carl Yankowski, 56, is taking the diversity route. "You don't want to be totally dependent on hits only," say Yankowski, a former top executive at Sony Electronics and Palm who joined Majesco last year. "That means you are betting the ranch on one game to be a killer out there. If it doesn't work out, the company goes down the toilet."

Like the virtual brawls it thrives on, the video-game industry is a fierce arena in which only the fit survive. Last year Acclaim Entertainment, an old-line gaming company that produced hits like "NBA Jam" and the "Turok" dinosaur hunter series, filed for liquidation in bankruptcy court. The Glen Cove, New York, company could not find many takers for titles like "Mary-Kate and Ashley Sweet 16," a party game featuring the twinkly Olsen acting twins. The video-game publisher exited the business with titles in development, including several that were near completion and almost ready to roll out.

Majesco, which went public in 2003, has had its ups and downs. The company's stock currently trades at about $11 a share, off from about $15 when Majesco shares moved last December 31 from the OTC Bulletin Board to the Nasdaq market.

The company's earnings reflect the impact of heavy product development costs. For the first quarter ended January 31, Majesco reported net income of $700,000-before a one-time charge-on record first-quarter revenue of $30.7 million. Those earnings were down from $1.1 million on revenue of $24.6 million for the first quarter a year ago. For the fiscal year ended last October 31, Majesco reported a loss of $15.3 million on revenue of $120.9 million.

Thanks to a $75 million public stock offering, Majesco emerged from the first quarter on a firmer financial footing than it had on entering it. Majesco had $64.3 million in working capital at the end of the quarter; a year ago it had been stuck in an $8.8 million working capital hole. "The company is now liquid, has money in the bank and we don't need any of the capital we raised for today's growth," says Yankowski. "We can fund that all out of current earnings."

A graduate of the Massachusetts Institute of Technology with bachelor's degrees in management and electrical engineering, Yankowski last August succeeded Majesco founder Morris Sutton, 66. Button's sons Jesse and Joseph serve as president and executive vice president for research and development, respectively; the family holds 30% of Majesco's shares.

The elder Sutton, a former investment banker, launched the company in 1986 to republish older video game titles for newer video game systems. Majesco initially built itself by selling budget priced games in the $15-to-$20 range; two years ago it expanded into premium titles like "BloodRayne," which sells for about $50 a pop.

Rayne, a stiletto-heeled vixen with a fondness for black leather, hunts down vampires and other nightmare creatures. The game has sold more than 600,000 copies and was the first Majesco tide to become available on the three major home systems. The popularity of the Rayne character has led to a spread in the pages of Playboy, a series of stand-alone "BloodRayne" comic books and appearances on MTV.

Yankowski's career includes five years as president and COO of Sony Electronics, where he launched the company's DVD, digital imaging and personal computer lines. He was then CEO of Reebok Unlimited and in 1999 moved on to become CEO of Palm, the maker of personal digital devices. He took Palm public but resigned in 2001 when the company's directors decided to split it into two separate businesses.

Yankowski subsequently launched Westerham Group, a Boston consulting firm, and went on to become chairman of CRF (Clinical Research Form), a Helsinki, Finland, life sciences company. He was originally approached to join Majesco as a director but found that he liked the company well enough to take the top job.

The company supports its lead products with marketing muscle. It spent $1.5 million to launch "BloodRayne" and this year plans to spend $1 million to roll out "Advent Rising," according to Ken Gold, the company's vice president for marketing.

Yankowski knows that Rayne and her digital cohorts will have to bring their "A" games to home playrooms to secure a growing niche for Majesco. Says Yankowski, who looks forward to the challenge: "I'm just a game player having fun."