Video game developer and publisher Midway Games on Tuesday announced it plans to lay off 25 percent, or 180 people, of its work force, close its Austin, Texas, studio, and halt development on several non-core games.

The names of the suspended games have not been disclosed, but the titles were scheduled to be released sometime in 2010 or 2011.

Although the company has been battered by financial problems, Midway CEO Matt Booty remains optimistic about the benefits of its cost-cutting initiative.

“The cost-reduction measures are vital for us to rationalize our operations and provide the resources necessary for our core properties to succeed,” Mr. Booty said in a statement.

Midway recently received a delisting notification from the New York Stock Exchange, and has been sold to a private investor for $100,000.

However, its main core title for the holiday season, MortalKombat vs. DC Universe, may bring some good news to the company. While Midway has yet to release internal sales data, industry tracker VG Chartz reports that the fighting game sold over half a million copies on the PS3 and Xbox 360.

Midway shares fell $0.02, or 10.42 percent, at $0.17.