Midway today held its first quarter earnings conference call, which also marked interim president and CEO Matt Booty's official introduction to investors and others (like us) listening in. Graciously, interim CFO Ryan O'Desky handled the seemingly good news that Q1 2008 revenue hit $29.9 million, up $18.8 million over Q1 2007's revenue, followed by the very bad news that Q1 '08 net losses totaled $34 million ($14.2 million more than Q1 '07 losses), before passing the mic over to Booty.
After a brief introduction, which included a shoutout to Midway's coin-op era "heyday," the 19-year company veteran set out to map a "path to profitability." While Q1 featured "no new releases in North America," and the Q2 highlight has already come and gone (what, you missed it?), Booty focused on the expected Q3 summer release of Unreal Tournament 3 for Xbox 360 as a potential starting point for getting the company back on track. (A port of last year's shooter leading your current portfolio more than halfway into 2008? Really, Midway? Really?)
Fear not. The "new" Midway is about making the right decisions for its long-term franchises, none of which has been more stretched and abused than Mortal Kombat. Have you heard? The next one's got Batman!
Booty added little to spark our general disinterest in the it-came-from-the-90s mashup, but did give us this canned detail: "integrated and compelling storyline" confirmed. But, actually, Mortal Kombat vs. DC Universe might not represent the worst of Midway's troubles. Consider that the remainder of Midway's forthcoming lineup is filled out by This Is Vegas, in which players experience "classic Vegas moments" in "open-world gaming evolved," The Wheelman, featuring "an iconic figure in the game world," and finally, a title that "got a lot of attention" at Midway's recent Gamers Day: TNA iMPACT! (no, our caps lock key is not stuck).
Despite questionable R&D, Booty stressed that getting out of the hole was a matter of coordinating sales, marketing and retail, with special focus on launch strategies. If Midway's abominable Game Party can move over 800,000 units worldwide (really, it has), we're willing to believe it. But it may take converting all of these IPs into Waggleware® to get there.
Reader Comments (5)
Posted: May 5th 2008 6:40PM Lijik said
Since half of Midway's master plan involves rehashing old franchises, I'd love it if they made a sequel to Dr. Muto. I'd even settle for "Mortal Kombat Featuring Dr. Muto!" or "NBA Muto Court!" or something along those horrendous lines.
Come on Midway, please revive a decent property of yours for once.
Reply
Come on Midway, please revive a decent property of yours for once.
Posted: May 5th 2008 6:45PM (Unverified) said
Sub-Zero Ice Capades - Tournament Edition
Believe it.
Reply
Believe it.
Posted: May 5th 2008 6:52PM falcomadol said
Unless Midway has Frank Miller on scripts and cutscene layouts, I'd say that MKvDC is fucked.
Reply
Posted: May 5th 2008 7:55PM (Unverified) said
The trouble with that Vegas game is it was Zucker's favourite game. Everybody in Chicago knew it was a total fucking disaster, but there was nothing to be done. Back when it was a 2 page blue sky document it had stuff like "play all casino table games against the AI including all the poker variants". I looked at it and was like, "this is 500 man years of development, those idiots in seattle have no fucking clue". But Zucker thought it was the greatest idea ever so the thing just lumbered on and on sucking up resources.
Game company CEOs have to come from the rank and file, because if they don't they all fall to a fatal disease. They start out saying "I don't do creative, I trust your judgement" but they can't be around all this cool stuff going on all the time and they have to start making value judgements and insinuating themselves into the process and of course they're finance guys or lawyers or marketers (which, don't get me wrong, are all really useful things) and they don't have game sense and they make horrible decisions. I saw it happen to Neil and I saw it happen to David. And look where Midway is now. Matt's a fucking diamond, I worked under him and he saved a project from disaster, but that company's ship has sailed.
Reply
Game company CEOs have to come from the rank and file, because if they don't they all fall to a fatal disease. They start out saying "I don't do creative, I trust your judgement" but they can't be around all this cool stuff going on all the time and they have to start making value judgements and insinuating themselves into the process and of course they're finance guys or lawyers or marketers (which, don't get me wrong, are all really useful things) and they don't have game sense and they make horrible decisions. I saw it happen to Neil and I saw it happen to David. And look where Midway is now. Matt's a fucking diamond, I worked under him and he saved a project from disaster, but that company's ship has sailed.
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