Midway Files for Chapter 11

Financially-troubled Midway Games has filed for Chapter 11 bankruptcy protection.

A Midway press release announced the move, which applies only to the company’s U.S. operations. Despite the bankruptcy filing, CEO Matt Booty remains optimistic:

This was a difficult but necessary decision… this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives…

Midway enters this process with strong underlying fundamentals, as evidenced by solid fourth quarter sales that exceeded expectations in spite of a challenging retail and general economic environment. Overall, Mortal Kombat vs. DC Universe sales are approaching two million units shipped, TNA iMPACT! has shipped approximately one million units, and our Game Party franchise has sold close to three million units in total.

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  1. 0
    Parallax Abstraction says:

    Midway’s been in a bad way for years.  They haven’t turned a profit in like 6 years and have released pretty much nothing but bombs for a long time now (though funny enough, MK vs. DC has apparently done like 1.5 million.)  Unfortunately, they kept the lousy leadership team that led them here for far too long and now they’re here.  At least they’re trying to reorganize.  I hope they come out of this well because we need more publisher competition, not less.

    Parallax Abstraction
    Ottawa, Ontario, Canada

  2. 0
    JustChris says:

    My town’s dying gasp of big game developers :-(

    Is game code just a natural resource that can only be found in big quantities in the West Coast? Is that why the rest of the nation has bad luck for game development?


  3. 0
    JC says:

    Not really, everyone was expecting Midway to be liquidated…. this isn’t the case though, they still want to live and thrive which is why they are filing under chapter 11 instead of 7.

  4. 0
    ZippyDSMlee says:

    Oh noooowwwwwww your doing dev closeings *rolls eyes*

    Oh wait thier not closing….


    This is a sign of things to come as cost of development will hurt the indutry bit by bit.

    Anyway How bad is MK/DC? Did they even try to polish the controls any?



    Gore,Violence,Sexauilty,Fear,Emotion these are but modes of transportation of story and thought, to take them from society you create a society of children and nannys, since adults are not required.


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