Michael Pachter: Midway could see profitability in 2008

  

Yesterday, publishing giant Midway announced its Q1 financial status, eyeing an optimistic US$ 11 million in sales for the first quarter of FY 2007. This was slightly more than what the publisher had anticipated for their introductory run through 2007, but Wedbush’s Michael Pachter said they were “cautiously optimistic” that Midway could do even better in this cycle.

Because of Midway’s increased investment on next-gen console development, it’s probable, according to Pachter, that the company could return to profitability by 2008. “[Wedbush believes] that [Midway] can generate sustainable profits if it can deliver revenues above the $300 million annual level,” said Pachter.

With so many highly-anticipated titles still in development and queued up for later 2007 release dates (Stranglehold, Unreal Tournament III), all that Midway did earn recently was just a taste of the potential profit of its entire lineup of titles it will be sending out soon.

Midway did forecast revenues of over US$ 215 million by the end of 2007, although Pachter believes if any of the titles should do incredibly well, he eyes not less than US$ 250 million worth of revenues by the end of the year.

It was under this revelation that he concluded that the publisher has a good chance of “achieving break-even economics” in 2008.

  

Yesterday, publishing giant Midway announced its Q1 financial status, eyeing an optimistic US$ 11 million in sales for the first quarter of FY 2007. This was slightly more than what the publisher had anticipated for their introductory run through 2007, but Wedbush’s Michael Pachter said they were “cautiously optimistic” that Midway could do even better in this cycle.

Because of Midway’s increased investment on next-gen console development, it’s probable, according to Pachter, that the company could return to profitability by 2008. “[Wedbush believes] that [Midway] can generate sustainable profits if it can deliver revenues above the $300 million annual level,” said Pachter.

With so many highly-anticipated titles still in development and queued up for later 2007 release dates (Stranglehold, Unreal Tournament III), all that Midway did earn recently was just a taste of the potential profit of its entire lineup of titles it will be sending out soon.

Midway did forecast revenues of over US$ 215 million by the end of 2007, although Pachter believes if any of the titles should do incredibly well, he eyes not less than US$ 250 million worth of revenues by the end of the year.

It was under this revelation that he concluded that the publisher has a good chance of “achieving break-even economics” in 2008.