Things are looking grim for the company that once gave us Gorf, Arch Rivals and Spyhunter. The Chicago Tribune reports that Midway may default on its staggering $240 million debt, and that according to an SEC filing the one-time arcade dynamo has just 50 days to get $150 million of this back into the hands of creditors. It's money, unfortunately, that Midway just doesn't have.
The Mortal Kombat publisher has enlisted the council of financial advisory firm Lazard, though time is short and money even shorter. The urgency stems from the company's recent change in majority ownership, which allows bondholders to demand full repayment on their investments. However, with Variety reporting just a smidge over $10 million in Midway's coffers, that leaves an awful lot of candy bars to sell over the next month and a half if the company is to keep from filing bankruptcy (let alone being ripped to shreds by investors pounding on the front door).
Reader Comments (68)
Posted: Dec 5th 2008 11:38AM (Unverified) said
If they would have being smart they could have ask Batman to create an Anti-Bankruptcy spray or something.
Reply
Posted: Dec 5th 2008 11:55AM (Unverified) said
Cmon Midway... use a Babality on those creditors!!!!
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Posted: Dec 5th 2008 2:19PM Spunky Monkey 190906 said
Go straight to jail, don't pass go, don't collect $150 million
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Posted: Dec 5th 2008 12:17PM Dopple Boppler said
"Think of this as pay back for making Mortal Kombat after 2 ;)"
Fixed
Reply
Fixed
Posted: Dec 5th 2008 2:22PM Spunky Monkey 190906 said
'Uh, those aren't fixed, kids. MK Deception was very good. Deadly Alliance and Armageddon weren't too shabby either. MK vs. DC is a blast to play. Learn to think for yourselves.'
Fine
'Think of this as pay back for allowing a crappy Mortal kombat movie to be made.'
Corrected :)
Reply
Fine
'Think of this as pay back for allowing a crappy Mortal kombat movie to be made.'
Corrected :)
Posted: Dec 5th 2008 6:43PM (Unverified) said
Unless you count the S.F spin off, MK series are pretty good. I don't know who started with the MK is teh suxxors bullshit.
Even the Movie (considering is based on a videogame) is the only movie based in a videogame that doesn't blows and is quite entertaining.
The only MK game I dislike is Armageddon which was just ambitious and failed
because it was half baked.
If you ask me is Blacksite / Blitz fault.
Reply
Even the Movie (considering is based on a videogame) is the only movie based in a videogame that doesn't blows and is quite entertaining.
The only MK game I dislike is Armageddon which was just ambitious and failed
because it was half baked.
If you ask me is Blacksite / Blitz fault.
Posted: Dec 5th 2008 11:42AM Jomolungma said
Lazard is raking in the dough. That's the same company the UAW cited yesterday as helping them figure out how to keep their pensions while Detroit goes under...
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Posted: Dec 5th 2008 11:44AM Revving Injuns said
I remember going to the arcades and playing all the Midway machines like Mortal Kombat. It's a shame. Is the government going to bail them out then? I rather they bailed Midway out then Ford.
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Posted: Dec 5th 2008 12:06PM (Unverified) said
It really does suck seeing Midway go down like this.
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Posted: Dec 5th 2008 12:55PM (Unverified) said
UT3 was good, but it was still just an expansion pack to the first one more than anything.
I enjoyed Blitz the Leauge! 1 and 2! The first time I saw that groin shot, I almost died. Mindless violence. I do hope someone other than Activision or EA gobbles up all the properties. Spread the wealth around a little bit.
Reply
I enjoyed Blitz the Leauge! 1 and 2! The first time I saw that groin shot, I almost died. Mindless violence. I do hope someone other than Activision or EA gobbles up all the properties. Spread the wealth around a little bit.
Posted: Dec 5th 2008 6:50PM (Unverified) said
MK vs DC and I have my serious face on.
Really is one of those games you would think it’s bad but actually is pretty good and the storyline isn't bad either. I would like to see a comic about it I mean if DC already did Batman Vs Depredator why the hell not a MK DC crossover? .Also crossovers sell like pancakes.
Also the “DC” ending just priceless. I won’t spoil the ending but is just one of those things you just have to see. I never laugh so hard
(Is just me or Depredators seem to visit earth just to die? I was reading Depredator in the soviet era I think and guess how it ends? It kills itself, freakin original rite?)
Reply
Really is one of those games you would think it’s bad but actually is pretty good and the storyline isn't bad either. I would like to see a comic about it I mean if DC already did Batman Vs Depredator why the hell not a MK DC crossover? .Also crossovers sell like pancakes.
Also the “DC” ending just priceless. I won’t spoil the ending but is just one of those things you just have to see. I never laugh so hard
(Is just me or Depredators seem to visit earth just to die? I was reading Depredator in the soviet era I think and guess how it ends? It kills itself, freakin original rite?)
Posted: Dec 5th 2008 11:46AM Mr Khan said
So there's that. Unless sales of MK vs DC shoot off into the stratosphere, or they fetch a Congressional Bailout, they're out of the game
Now the question is dividing up the spoils...
Unless i read this wrong and this isn't the "gone forever" kinda bankruptcy, it's the "i need X amount of time to get my shit together" bankruptcy
Reply
Now the question is dividing up the spoils...
Unless i read this wrong and this isn't the "gone forever" kinda bankruptcy, it's the "i need X amount of time to get my shit together" bankruptcy
Posted: Dec 5th 2008 12:04PM (Unverified) said
i think this is a Aclaim type of Bankruptcy :(, there goes my childhood =(.
Reply
Posted: Dec 6th 2008 3:58AM Foetoid said
*Sheds a tear rememnbering how excellent Acclaim was*
Can't help the tears, Shadowman and Forsaken, both on N64, are two of my favourite games ever.
As for Midway. Nintendo seems to be sitting on 100 Billion Dollars, they should just step in and buy the whole company, making ALL future Midway games for Nintendo only. Then with Nintendo helping them out, they might reach the status of Rare in the N64 days.
Rare did so well back then due to Nintendos support, but now M$ doesn't support them in the same way and they've been bollocks ever since. Midway could really be helped by Nintendo on this one.
Reply
Can't help the tears, Shadowman and Forsaken, both on N64, are two of my favourite games ever.
As for Midway. Nintendo seems to be sitting on 100 Billion Dollars, they should just step in and buy the whole company, making ALL future Midway games for Nintendo only. Then with Nintendo helping them out, they might reach the status of Rare in the N64 days.
Rare did so well back then due to Nintendos support, but now M$ doesn't support them in the same way and they've been bollocks ever since. Midway could really be helped by Nintendo on this one.
Posted: Dec 5th 2008 11:49AM darkinchworm said
They do have some good franchises buried in there somewhere, and every couple of years they go on a great-development kick.
Too bad they're basically in the shitter now.
Reply
Too bad they're basically in the shitter now.
Posted: Dec 5th 2008 12:09PM ThornedVenom said
150 million dollars in 50 days? Sounds like a plot for a cheesy movie.
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Posted: Dec 5th 2008 12:26PM WiNGSPANTT from TopTierTacticsco said
Midway should pull a Run Lola Run and bet all of their $10 million on one number in Roullette
Then again they still wouldn't have enough.
Reply
Then again they still wouldn't have enough.
Posted: Dec 10th 2008 11:58AM Paviel said
"Midway should pull a Run Lola Run and bet all of their $10 million on one number in Roullette
Then again they still wouldn't have enough."
If you win a bet on a single number in Roulette, don't you get 36 times the money back?
If they won that round of Roulette, they'd have $360 million...
Reply
Then again they still wouldn't have enough."
If you win a bet on a single number in Roulette, don't you get 36 times the money back?
If they won that round of Roulette, they'd have $360 million...
Posted: Dec 5th 2008 3:30PM ThornedVenom said
They better pray that the cover system works well for their asses.
Reply
Posted: Dec 5th 2008 12:26PM Shagittarius said
Gamers!
This is our chance. If we can donate enough money to bailout Midway they will have to make the games we want to play. I'm setting up a paypal account that you can doante to in my name, then I'll give the money to Midway.
Reply
This is our chance. If we can donate enough money to bailout Midway they will have to make the games we want to play. I'm setting up a paypal account that you can doante to in my name, then I'll give the money to Midway.
Posted: Dec 5th 2008 12:34PM (Unverified) said
hmmmmm
They should ask for a Bailout.....
EA or ActiBlizzard may snatch them up
Reply
They should ask for a Bailout.....
EA or ActiBlizzard may snatch them up
Posted: Dec 5th 2008 12:50PM 343 Guilty Fart said
Remember the skit where Kermit went to get a t-shirt with the word 'Frog' on it but he got a shirt with 'Gorf' instead?
Reply
Posted: Dec 5th 2008 12:53PM (Unverified) said
"Think of this as pay back for making Mortal Kombat after Trilogy"
Reply
Posted: Dec 5th 2008 1:20PM erh said
People warned that the 360/PS3 would kill off publishers, when they started seeing $20-$30 million game budgets (up from $4-$10 million in the previous generation). Only the largest developers like EA can survive in this environment. Small and mid-size game companies need to be bought or merge into much larger entities if they don't want to end up like Midway.
Reply
Posted: Dec 5th 2008 3:27PM AoE said
Right, because Midway wasn't having any troubles whatsoever before this generation, they have a reputation of shipping nothing but top-notch amazing titles, and of course the economic downturn isn't affecting them one iota. CURSE YOU SONY and MIRCROSOFT! CURSE YOOOOOOOOOOOOOOOOOOOOOUUUUUUUUU!!!!!!!!!!!!!
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Posted: Dec 5th 2008 11:49PM jackal said
High development costs aren't what's killing Midway; alienating their audience and releasing nothing but mediocre games (that no one really wants) for a few years straight is.
Mortal Kombat moved in the opposite direction of what fans originally bought it for. The over top violence has been castrated and the gore's all but non-existent. The new "fatalities" don't hold a candle to the old ones. Go read about how the Joker's fatality was tweaked just so the game could go from an MA to a T rating. It's now just a watered down fighter, and with better games out there, what compelling reason does someone have to buy Mortal Kombat?
Or how about Unreal Tournament 3? People were clamoring for the game when it was first announced but Midway discovered something quite strange. If a new game in a series is a regression from its predecessor, people won't buy it no matter how pretty it is. UT3 offered nothing over UT2004 in terms of gameplay, actually has fewer modes, and PC gamers absolutely detested the consolized UI. Not all PC mods work with the PS3, and the Xbox 360 version has no mod support whatsoever (a massive no-no for an Unreal Tournament game). That's why there's probably less than 500 UT3 players online worldwide right now while UT2004 is, right now, being played by thousands.
Mediocrity killed Midway, Evan. I wish people would actually realize this before they start the "high development costs are killing the gaming industry" bandwagon.
Reply
Mortal Kombat moved in the opposite direction of what fans originally bought it for. The over top violence has been castrated and the gore's all but non-existent. The new "fatalities" don't hold a candle to the old ones. Go read about how the Joker's fatality was tweaked just so the game could go from an MA to a T rating. It's now just a watered down fighter, and with better games out there, what compelling reason does someone have to buy Mortal Kombat?
Or how about Unreal Tournament 3? People were clamoring for the game when it was first announced but Midway discovered something quite strange. If a new game in a series is a regression from its predecessor, people won't buy it no matter how pretty it is. UT3 offered nothing over UT2004 in terms of gameplay, actually has fewer modes, and PC gamers absolutely detested the consolized UI. Not all PC mods work with the PS3, and the Xbox 360 version has no mod support whatsoever (a massive no-no for an Unreal Tournament game). That's why there's probably less than 500 UT3 players online worldwide right now while UT2004 is, right now, being played by thousands.
Mediocrity killed Midway, Evan. I wish people would actually realize this before they start the "high development costs are killing the gaming industry" bandwagon.
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