Midway has confirmed that they have canceled an "as-yet-unannounced" project in Austin and is laying off 90 of 130 people. Earlier today we wrote that 70 to 90 people had been let go this morning and that free-roaming crime game Criminal had been axed. "While this was a very difficult decision, we feel it was the right thing to do for the future of Midway," said Matt Booty, interim CEO and president of Midway Games Inc.. "We view every game as an investment that must meet certain standards for quality, scheduling, and profitability. Midway remains committed to producing the highest quality entertainment, as evidenced by our strong holiday line-up which includes TNA iMPACT!, Blitz: The League II, and Mortal Kombat vs. DC Universe starring a team of MK characters and some of the most recognizable DC Comics personalities such as Batman, The Joker, and Superman." Midway says that the decision will "allow Midway to maximize its development resources and apply manpower and capital to projects with the highest chances of success."According to a Form 8K filed with the SEC by Midway on Friday, the company's board of directors plans to implement a plan to reduce the company's "cost structure and maximize its development resources by applying manpower and capital to projects with the highest chances of success." To do that Midway has started a "strategic workforce reduction." Those reductions will include 90 to 130 people in Austin or about 10 percent of the company's global workforce. The majority of the cuts are expected to hit by the end of the month. Of the 90 people being laylet go, 80 are full time and 10 are contractors, according to Midway officials. There are no plans to close the Austin Studio, we've been told. Midway to Cancel Project in Austin Studio, Optimize Product Development Resources [Midway] and Form 8-K for MIDWAY GAMES INC
Midway in today reminds me of Acclaim back in my childhood. Occaisional flashes of merit that stuck out like pieces of corn among a seemingly constant stream of shit.
jackassjackson hit the nail on the head. This company is collapsing under the weight of its own overhead. Always sad to see jobs lost in the process, but if Midway hopes to last another ten years, they need to re-evaluate their entire business model from the ground up, and probably trim more fat.