Financially, things are not too bright for Midway – the company expects a third quarter net loss of $0.70 per basic and diluted share, compared to a $0.49 anticipated loss. In other words, stuff is about to change, games will be cancelled and the management will generally be reluctant to trying new things (aka new games) until the company starts putting up a profit.
In order to restore the financial happiness of the investors, Midway will now terminate non-core licenses and other non-cash charges and they will focus on their core gaming properties. We wonder what that means. Mortal Kombat and TNA Impact are definitely “core” properties, but we really wonder what will happen with the likes of Wheelman or This Is Vegas – Midway offered no specific details on the titles canned.
“The resolution of these licensing arrangements on good terms for the company is a very positive step as we continue to review Midway’s involvement with underperforming projects and focus on our core properties,” said Matt Booty, interim CEO and president.
One thing is clear: Midway has been plagued by financial problems for a while now – back in August they had to close their Austin-based studio and now they’re cutting off a few titles. I’m really curious to see where will this lead to… But let’s just hope for the best!