Midway Games on Monday made a $40 million deal with National Amusements that will help ease manufacturing costs for its upcoming games Blitz: the League II and Mortal Kombat vs. DC Universe.

“Midway’s lineup for this holiday season represents an important launchpad for the company to regain market leadership,” said Shari Redstone, chair of the board, in a statement.

The need to “regain market leadership” and offset its manufacturing costs comes amid some recent turbulence for the video game company. The company reported a net loss of $34.8 million on $23.4 million of revenue for the second quarter of 2008.

This compares with a loss of $14.3 million on $31.8 million in revenue in the second quarter of 2007.

Last month, Midway also canceled a project and had to lay off 90 people as a result.

Majesco Entertainment on Monday said it has signed a distribution agreement with Scholastic Interactive. Under the deal, Majesco will distribute Goosebumps HorrorLand and Ultimate I Spy in the fall.

The company, which has shifted focus to casual gamers with lower-budget titles, has recently faced potential delisting from the Nasdaq.