Quarterly sales were $8.4 million, down from $18.3 million for the comparable quarter.
In a regulatory filing, the company attributed the drop in sales to a tough year-on-year comparison. SouthPeak launched the Xbox 360 version of the RPG Two Worlds during the same quarter in 2007.
The number of videogames sold during Q1 fell to 530,000 units, down 171,000 year-on-year. Net revenue per game sold fell 39 percent from $26.10 to $15.83.
Net loss was $1.6 million, down from net income of $3.4 million a year ago.
Operating loss for the quarter was $1.5 million, down from operating income of $3.5 million.
SouthPeak recently acquired Austin, Tex.-based publisher GameCock.