Midway posts more losses in Q3, will drop underperforming titles
Midway Games posted its Q3 report, and things aren’t looking too hot. They’re not the only one, though. A lot of publishers are really feeling the economic heat right now. As a result, Midway will drop underperforming titles to optimize revenues and minimize costs.
After posting its third quarter report, Midway joins the ranks of EA, THQ, and Brash who are all experiencing much difficulty with the economic situation. Like THQ, Midway is looking at cost-cutting measures and dropping titles.
In their Q3 report last year, Midway Games reported incurring a net loss of US$ 33.5 million, that amount more than doubles this year and now they posted a US$ 75.9 million loss.
They point out that this is due to the optimization of its Austin facility, the cancellation of an unannounced game, and the “entrance into a receivables factoring agreement” to offset the costs related to manufacturing fall game releases.
Outlook isn’t pretty good and Midway is expecting to post more losses in the fourth quarter – even with the upcoming launch of formidable titles.
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