Midway Sheds Casual, Predicts Loss

by Michael Lee on 16 October 2008, 12:12

Categories: Media
Topics: Midway , Wheelman , Mortal Kombat vs DC Universe , Non-Cash Charge

 

Midway Games is cutting its ties.

 

The video game publisher announced Thursday that it will terminate any “non-core” licenses and partnerships. The result:  Midway expects to extend its third-quarter loss per share to $0.70 from a previously forecast $0.49 a share.

 

This move comes after Midway cut a deal to help with manufacturing costs  amid burgeoning losses.

 


A Midway representative said that only licensed games are being terminated and that its relationships with DC--who they have worked with for the upcoming Mortal Kombat vs. DC Universe--and TNA are still strong.

 

Midway said that Wheelman, a game starring actor Vin Diesel, is the company’s own intellectual property and is not affected by the cuts. The game will also be adapted into a movie by MTV Films and Paramount Pictures.

 

Midway will use the termination of partnerships to free up efforts on internal franchises such as Mortal Kombat vs. DC Universe.

 

"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, in a statement.