Midway closes studio, cancels games

Midway has taken further efforts to reduce costs and minimise losses today with the closure of its Austin studio and the cancellation of all its projects that were projected for a 2010 or 2011 release date, all of which were unannounced.

Midway has announced redundancies across all territories also, losing staff in San Diego, Austin and Chicago according to GamesIndustry.biz. The move sees the total workforce of the company being decimated with more than 25 percent of the publishers total employees being terminated.

The historic publisher and games developer has been facing hard times as of late, with rising losses and spiralling debts leading to a possible de-listing from the New York Stock Exchange. The publisher is currently in danger of defaulting on debts of around £150 million GBP.

Shareholders have been desperately trying to distance themselves from the company too, with majority shareholder Sumner Redstone selling his controlling stake for just $100,000 USD - a move which caused the share prices to drop another 40 percent.

"The cost-reduction measures are vital for us to rationalise our operations and provide the resources necessary for our core properties to succeed," commented Matt Booty, president and CEO of Midway.

"These initiatives, along with the other steps we have taken this year, are a response to the specific challenges we are facing at Midway, many of which have been amplified by the current economic conditions."

Midway seems to have been pinning all its hopes on its latest title, Mortal Kombat vs. DC Universe, but reception to the beat-em-up has been luke-warm at best. Tell us what you think about the game and the company in the forums.