Wheelman Pushed to March 20

Posted by Deadly Cyclone at 10:25 AM 0 comments

Midway has announced that Vin Diesel's new game Wheelman has been pushed back to March 20th. The game rides along with the movie of the same title. The delay is said to have been done "to provide a more optimal launch time frame."

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Midway Austin to Close, Layoffs Begin

Posted by Deadly Cyclone at 12:40 PM 0 comments

Midway announced today that it will be closing its Austin, Texas studio and halting development of "non-core" games to try and reduce costs. Staff reduction will cut approximately 25% of the company's global workforce over their Chicago, Austin, and San Diego locations.

"“The cost-reduction measures are vital for us to rationalize our operations and provide the resources necessary for our core properties to succeed,” said Matt Booty, president and CEO of Midway. “These initiatives, along with the other steps we have taken this year, are a response to the specific challenges we are facing at Midway, many of which have been amplified by the current economic conditions.'"

Full release after the jump.

"CHICAGO — December 16, 2008 —Midway Games Inc. (NYSE: MWY) today announced that the company is taking significant steps to reduce its cost structure, including a reduction in workforce, the closure of its Austin, TX, studio, and the suspension of development on several non-core games.



The cost-cutting initiatives will involve a reduction in force across multiple disciplines within the company in its Austin, Chicago and San Diego locations. Headcount will be reduced by approximately one quarter of Midway’s global workforce. The suspended non-core projects were previously scheduled to release in 2010 or 2011 and have not yet been made public.



“The cost-reduction measures are vital for us to rationalize our operations and provide the resources necessary for our core properties to succeed,” said Matt Booty, president and CEO of Midway. “These initiatives, along with the other steps we have taken this year, are a response to the specific challenges we are facing at Midway, many of which have been amplified by the current economic conditions.”



Additional details on the reduction and the financial impact can be referenced in the report filed today on Form 8-K with the Securities and Exchange Commission."

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Midway Woes Continue, Stocks Face De-Listing from NYSE

Posted by Deadly Cyclone at 11:16 AM 0 comments

Midway Games just cannot catch a break these days. First the publisher posted loses of $76 Million, then Shari Redstone stepped down as the companies chairperson, finally they were forced to lay off 20-30 staff, and now this.

Midway received a warning today from the New York Stock Exchange that their stock had failed to meet the minimum closing price of $1 over 30 consecutive trading days. The warning stated that if the stocks did not rebound, they would be de-listed from the Exchange. Midway's stock will continue to be listed at least for the next 6 months where they must get the price about the $1 minimum.

In a tough economy it is not a good sign to see yet another developer struggling. Hopefully Midway can get their affairs in order and turn the business around.

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