Tech & Biz

Midway Games Files for Bankruptcy

by mazevedo | February 13, 2009 at 09:38 am

307 views | 10 Recommendations | 7 comments

A shocking and pretty sad situation for gamers who enjoyed the Mortal Kombat series, no more brand new "Get Over Here!", at least for a little while now. This is due to Midway the company famous for the Mortal Kombat series has just filed for bankruptcy in order to keep its operations going as it seeks a potential restructuring plan.

"This was a difficult but necessary decision," Midway CEO Matt Booty said in a statement of the bankruptcy filing.
"We have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure."

As a cost saving mechanism Midway has already laid off 25% of its staff, closed its studio in Texas and suspended several projects in December.

Apparently the good news for Midway fans however is that Midway international will resume its operations normally and is not being affected by the bankruptcy filling in the United States

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jordan

at 10:31 on February 13th, 2009

Between this and the Sega closures, the war on geeky adolescence continues. It's not pretty.

mazevedo

at 11:17 on February 13th, 2009

A little more info on the video game industry:

Midway's filing came the same day Japanese video game maker Square Enix Co. offered to buy Britain's Eidos Interactive Ltd., the publisher of the "Tomb Raider" series, in a deal valued at 84.3 million pounds ($121.7 million). The offer signals there may well be market out there for video game companies even in the current economy.

Acclaim Entertainment and 3DO Co., both publicly traded, filed for bankruptcy earlier this decade, but unlike Midway they liquidated their assets.

NidalM

at 11:52 on February 13th, 2009

Edited to add the glow, this photo, taken in Ann Arbor, MI shows a young man dressed as a Mortal Kombat character on Halloween.

NidalM has contributed a photo to this story.

coolsteel27

at 13:52 on February 13th, 2009

Dress up of videogame character Scorpion from Mortal Kombat.

coolsteel27 has contributed a photo to this story.

butteredcornflakes

at 14:12 on February 13th, 2009

I was under the impression that midway was doing a lot better since the release of the new MK game but that shows how much I know...thanks for using my photo too I guess, despite how Shaquille O'neal isn't really in Mortal Kombat.

butteredcornflakes has contributed a photo to this story.