In future, the focus will be on revenue sharing partnerships to roll-out its virtual reality pods into high footfall locations rather than direct sales.
This will help build a recurring revenue stream and help the group reach break even on an underlying basis faster, but there will be some short-term disruption.
Alongside the strategy update, Immotion also announced a £2mln fund rise via a placing at 6.75p per share plus up to a further £500,000 through a broker option.
Immotion 's decision had been influenced by the good numbers being generated from its seven acquarium and sea life partners.
Its roll-out will now be expanded to other high footfall "edutainment" destinations such as zoos, science centres and museums.
Average total gross revenue per headset (pod) per month from the 'aquarias' is about £2,100.
Based on that level of revenue, Immotion estimates it needs 410 headsets to break even on an underlying/EBITDA basis.
A further 34 new headsets are due to be installed in the coming weeks and added to 118 agreed, subject to contract, would take the total to 389 installed headsets.
At the current growth rate, break-even is predicted for the first quarter of 2020 with 1,000 headsets expected to be installed by the end of that year.
The short-term impact of the focus on the Partnership Model, however, will be lower than expected revenue for the 2019 financial year, as the forecast "one-off" revenue from direct sales are exchanged for recurring revenues with Partners.
As there will also be higher overhead costs, underlying losses [EBITDA] will be in line with 2018.
Martin Higginson, chief executive, said: "Demand from high-quality aquaria partners is very strong and we are beginning to see demand from other verticals.
"As we move closer to EBITDA breakeven, this tipping-point business is poised for substantial growth.
“As the number of Partners increases, and the volume of recurring revenues increases, the revenue and profit potential for future years will not only increase substantially but will also be much more predictable."
Shares were trading down 16.5% at 6.55p.