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Midway posts $76 million quarterly loss

July-Sept. losses more than double on charges the Mortal Kombat maker took to cancel underperforming IPs; Redstone quits board.

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Last month, Midway revised its estimated earnings for the July-September quarter, predicting its losses would almost double. Today, the company submitted its final earnings report--which revealed a shortfall even worse than last October's grim estimate.

No fatality...yet.
No fatality...yet.

For the three months ended September 30, the company posted a deficit of $75.9 million, or $0.83 per share, on revenues of $36.7 million. That's more than twice the $33.5 million, or $0.37 per share, the Mortal Kombat maker bled out during the same period a year ago. The larger loss includes undisclosed charges related to the cancellation of several unnamed but underperforming games based on licensed IPs.

Matt Booty, the troubled publisher's recently installed permanent president and CEO, exuded determination in a statement. "During the quarter we executed on a series of strategic and financial moves that reinforce our commitment to developing games that meet clear profitability and scheduling goals. While some of those steps negatively impacted earnings, they were necessary to ensure we are better positioned for long-term success," he said. "More importantly, we launched three high quality games, and completed the final touches on our highly anticipated fourth quarter releases."

Critics partially agreed with Booty on the quality of the three games he referred to: TNA iMPACT!, Mortal Kombat Kollection, and the Xbox 360 edition of Unreal Tournament 3. (The latter of which is being expanded.) During the fourth quarter, the publisher has already released the semi-acclaimed Blitz: The League II and will ship its highest-profile 2008 release, Mortal Kombat vs. DC Universe, next week.

Midway believes its holiday lineup will slow its financial hemorrhaging. The company expects a per-share loss of $0.20 on $105 million in quarterly revenue. For the year, that figure increases to a whopping $1.78 per share on $210 million in revenue. If accurate, that annual per-share shortfall will be more than four times the current value of Midway stock, which ended the day at $0.43 on the NASDAQ.

One person who won't be around to see Midway's annual report is Shari Redstone. The daughter of medial mogul Sumner Redstone (who partially owns GameSpot parent CBS) resigned on Friday from her position as chairperson of the publisher's board. She was appointed to the board in 2004, after her father's company, National Amusements Inc., bought a controlling stake in the publisher.

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Avatar image for GeigerdolylWodd
GeigerdolylWodd

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I know this isnt a popular idea but what if they made a firstperson fighter not another FPS but an FPF no guns just fists and feet. A tournament fighter there could be some onlline support for up to two players and it coud be played locally without system link on the same console. Systemlink could be used as well.

The looking would be refined so much so that the controls would be the same as what's become the norm in other tournament fighters like say King of Fighters with a double tap this or that way being used to jump out the way in that direction. All you have to do is get close enough to aim at and hit your opponent.

One person would always be looking at their opponent. The left thumbstick would be used to move forward, back, left and right.

Jumping would be a hard up on the right thumbstick, ducking would be hard down on the right thumbstick. Incidentally if you wanted to aim high or low you still could on the same stick since there are a variety of values registered with in the thumbstick's range of movement values. You could also aim your hits left and right. Unlike in FPSs none of the aming would affect where you look. You'd still be looking directly at your opponent.

Punching would be handled with the left trigger with the degree to which its pulled used to determine how fast or slow the punch is as well as how powerful or weak it is. The right trigger would be used for kicking. But much like punching the speed and strength of said kicks would be determined by how hard you pull the trigger.

That leaves the face buttons open which would allow you to slow down incoming hits and block them. The Y button as the block button, the X button used to sway to the left, the B button used to sway to the right, and the A button used to lean back away from the incoming hits respectively.
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Zerobeam

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I've never really been a fan of Midway, aside from Mortal Kombat (which seems to get worse and worse with each release), Midway doesn't have any games. They seem to peddle their second rate crap. Its like they don't even put any real effort into making decent games. And now, as is evident by the large amount of $'s they lost, its comin back to bite em. Let this be a lesson to other crappy video game developers...step your game up cause eventually even the dumb people who usually buy your games will see how bad they really are and stop.

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GeigerdolylWodd

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How about some constructive criticism. I mean I know some of you dont want Midway to leave. So let's give them some ideas to play around with. I think they should start making games with an initial low budget then gradually expand the budget on a as needed basis.

This might make their coders more creative and force them to get more out of what they have to develop with instead of using more and doing less with what theyve got.
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Freedom_Link

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Cant say Im completly surprised, I think the last game I bought that Midway were involved with was RoadKill and that was a beast of a game. Just nothing they release now catches my eye.

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kweeni

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MK vs DC looks cool but nothing original, i dont think it will sell that well UT is really good but again nothing new anymore or original stranglehold even though i haven't played it looks good but not great blacksite wasn't so good either, perhaps bit more development would have helped my point is midway needs to drop these titles, not many people still care about them. midway needs to spend its money on something new, original, not old, really worth the money, something that many people will care about. thats how you gain profit

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Mystoksor

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I still feel sorry for Midway. They had some good games back in the day, but we've all seen how a company can change (Interplay lol)

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Makhdoom82

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Yes make good games and then expect profits :)

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shade1978x

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Good. Midway makes crappy games, anyhow.

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Elem3nt

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Piece of advice for you midway. Try comming up with something new and original. Instead of rehashing games that werent all that amazing to begin with. I've been playing MK since the early 90's, what else do ya got? Another piece of advice. Try releasing your games at a reduced price. Who in their right frame of mind is willing to pay 60 bucks for a linear beat em up game, with a replay value comparable to watching paint dry. Hey look its another crappy sequel to the 5 or so equally crappy prequels. Lets go spend 60 dollars of our hard earned money on that. I mean it doesnt take a marketing genius to figure out why your losses are so great. I say quit trying to bank on peoples sense of nostalgia if you feel like staying afloat. If im feeling nostalgic I'll simply dig the snes out of my closet, its much cheaper that way.

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shadowblade99

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This is what happens when MK vs DCU is your major game for the year.

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Molezzi

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Agreed Hillsy, They dont really make fantastic games. Although Strangle Hold was really fun. but no where near great :-)

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tyzwain

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They need to drop old ideas. Seriously, something original and out of line. You can do it Midway...

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psykhophear

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That's a big loss. Can't imagine the time when Midway will just vanished. The company's been truly innovative during the Super NES era but recently I don' recall the last time I bought a Midway game. I love the Mortal Kombat series but the developers are really one step behind time with its "aging gameplay". What it need is something new and fresh, like the Suffering games. They should expand the Suffering game or even make newer titles. MK vs DC Universe is their only hope and if that game revives Midway's loss, I'd give them one big round of applause.

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Hillsy_

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They don't do any games I really like. Mediocre games at best. Then again, Stranglehold did have a certain charm which I did enjoy.

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Nexeus

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Hey midway, Thanks for porting Shadow Hearts 2. And thanks for all the childhood memories of tearing peoples spines out and blowing them up. But your almost gone and Ill be sad to see you go...

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RaixATM2

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yep, it's all over unless a miracle happens.. even though MK is still one of the fighters I cherish dearly, the almost random combination with DC will only please fans of BOTH franchises, I myself have nothing with DC and I know a lot of DC fans who want nothing to do with MK... Mismatch that will set them back a few million

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Fat_Boy_PT

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Its just a matter a time before they´re finished. The only really big ip they have is Mortal Kombat but this stuff with DC is not really MK anymore and it wont be enough to save them. I really liked Stranglehold but that mess with Area 51 and TNA really turned me off to Midway.

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chineolee

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Midway's portfolio is stale. Even the mighty unreal is being eclipsed by Gears these days. It's downhill for Midway from here on in.

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Nichols1984

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Is Midway Working On Anything Besides A Dull Fighter And A Mediocre Football Game? Now Thats A Fatality

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tidyspidey

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lol @ buffdaddy.... it is kinda funny that the US has more censorship laws and in turn more violent crime than us Euro's who enjoy boobies so much.... teehee. Still I agree that it would have been fun to be able to rip off one superhero's head with another.... yes, it would be "wrong" and wouldn't fit into the way the comic stories work, but it's a game people - it's meant to be maximum fun, minimum realism. I mean, how real are superhero's and the MK/DC universe clashing in the first place? They should lighten up, really... Now i'm going to back to enjoying low violent crimes and boobies in our commercials ;)

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WestSideAzn

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I applaud Midway for staying in the business for so long.... Mortal Kombat is still a good game.... not as appealing as before, however. I still like the Blitz games... keep making them and I will keep buying them!

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fredwv

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mortal kombat hasn't been big in over 10 years. Midway can't keep pinning its hopes on a dead franchise.

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yboucher

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So daddy's girl is out, that can only be a good thing.

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buffdaddy69

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How awesome would it have been to see Batman rip off Supermans head? *sigh* i hate censorship. Over in europe they see boobs on T.V non-stop during commericals and everything. But an American game company can't even let DC Characters have awesome Fatalities? Pffft. Why would you put Lex Luthor in and not Two-Face?

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insanitycheck3

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[This message was deleted at the request of the original poster]

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godzillavskong

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Midway hasn't really published anything noteworthy.I thought Stranglehold was a good bargain-bin buy, but other then that, I don't think Midway has been kean on picking up good titles.Blacksite Area 51 might have been good if they would've let it stay a little longer in the development cycle.I think Mortal Kombat vs DC will be a pretty good game, but I don't know how well it will sell.I hate to see a gaming company do poorly, just look at how Atari and Sega have been struggling. Sega does have a hit or miss title here or there though.

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nemes1s3000

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Mark my words, MK Vs. DC will result in more money loss.

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zintarr

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Ouch...this would be a bad time to be a Midway employee.

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elby322

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midway's games are just average. they never make a game that's a must-buy. in the early 90's their games were cool but now's a new generation of games and midway doesn't seem to know how to adapt. even EA won't try to gobble them up.

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angergod

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i remember a time where they actually came up with a solid lineup like PSYOPS and THE SUFFERING, now those are the kinds of titles they should start developing, not just entirely relying on MK and UT as "good" games and a bunch of crappy license games.

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Quiggs1337

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The cruelty of the business world. But its just like evolution if you under perform your just not going to make it.

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AnotherMulligan

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sigh, i guess this is what happens when a company puts of s*** for games

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Gooshnads

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Midway has been made of more fail than Atari ....

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jinzo9988

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I have no clue how Midway has managed to survive for so long. I have always lumped them and always will continue to lump them as a studio with folks like Acclaim. They are however recently doing some good, so here's to hoping they stick around and finally deliver a game I can actually have any shred of interest in playing. The name Matt Booty in all un-seriousness is total win. Let's have more news updates on him so I can read more gold like "Critics partially agreed with Booty on the quality of the three games he referred to".

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FidelSarcastro

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It's the nature of the beast, in these troubling financial times there are gonna be those who faulter and in turn are devoured by those who prosper. its the same thing that happened when the games industry tanked in the late 70's. Though all this will do will create a smaller market that will have higher demand per company and in doing so will make it ripe for gradual growth till the next time the market tanks again.

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skwrlX

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Hopefully this will prompt them to make an awesome, AAA title that will get them a lot of money and also give us a good game.

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ibonedayu

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That's what happens when the quality of a publisher's catalog is atrocious. Looks like they're treading the path of Acclaim.

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imayellowfellow

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i hope they survive, more game companies means more competition and generally better games

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KamuiFei

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Last decent MK game I played was MK Trilogy on the first Playstation. Last decent Unreal game I played was Unreal Tournament on PS2. Midway hasn't gotten much love or respect from me ever since.

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thesand212

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Midway you have epic games to back you up come on

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smack_masta

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Even though they don't make very good games, it's just bad for the industry.. although MKvsDC looks decent.

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xtiansk8

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this is bad man...

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-WHATTHEDUECE-

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As much as i hate the "Games" Midway seems to puke out... im kinda sad to see ANY game Developer suffering, i just can't help think it's bad for the industry as a whole.

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jcloverboy

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well they ain't getting my money on MK vs DC after the over-censoring that was done.

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_JPH_

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Midway will either shut down or will be bought by a major company. It's just a matter of time.

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Lucidmike78

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Unreal? Are people still playing this game? Last time I played this game was on my Voodoo Rush card.

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Frank__i

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snarple_basic your right, I wish this system could end one day. I remember the fact that serious sam was only 30 $ when it came out and i won game of the year here on gamespot. ( I Really Liked that game wish they could make a Good sequel)

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bigd575

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Looks like mk is there best hope.

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ItsEvolution

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"this game is there for the best mortal combat game i played thus far" What?

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snarple_basic

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Far as Im concerned this is proof that game companies that have a game coming out that's doesn't seem to be very strong on the minds of gamers needs to have some kind of budget price. At the moment gamers only buy online games that are popular with other online gamers. This hay every game is equal you bring yours out at $60 and we'll bring ours out at $60 needs to stop. Its that simple.

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