In what I consider to be a very wise business move, Midway has decided to narrow their focus on licensed games to those that perform well. While no specifics were mentioned, the company announced that they've amicably resolved various underperforming licensed properties in order to focus on more lucrative properties such as DC Comics and TNA Wrestling.
“The resolution of these licensing arrangements on good terms for the company is a very positive step as we continue to review Midway’s involvement with underperforming projects and focus on our core properties,” said Matt Booty, interim CEO and president. “Our fall lineup and strong pipeline of games that tie in to market-leading licenses like DC Comics and TNA Wrestling underscore our strategy of aligning with consumer and entertainment properties that can drive a solid gaming experience.”
Let this be a lesson to up and coming video game publishers. Only create games that make you money.Midway Focuses Development on Core Game Properties, Optimizes Licensing Line-up Termination of non-core licenses and other non-cash charges result in revised earnings guidance for third quarter CHICAGO—(BUSINESS WIRE)—Midway Games Inc. (NYSE: MWY) today announced it has come to mutually beneficial terms with licensing partners resulting in the cancellation of future versions of related game properties and associated development expenditures. The resolution of these licenses accelerates non-cash charges into the third quarter ended September 30, 2008, and, combined with other non-cash charges, results in a revision of Midway’s estimates for the third quarter. Midway now expects a third quarter net loss of $0.70 per basic and diluted share, compared to its previously adjusted estimate of a net loss of approximately $0.49 per basic and diluted share. On a non-GAAP basis, which excludes approximately $0.10 of non-cash convertible debt interest expense, stock option expense, and deferred income tax expense related to goodwill, the Company now expects a loss of approximately $0.60 per basic and diluted share, compared to its prior estimate of $0.39 per basic and diluted share. “The resolution of these licensing arrangements on good terms for the company is a very positive step as we continue to review Midway’s involvement with underperforming projects and focus on our core properties,” said Matt Booty, interim CEO and president. “Our fall lineup and strong pipeline of games that tie in to market-leading licenses like DC Comics and TNA Wrestling underscore our strategy of aligning with consumer and entertainment properties that can drive a solid gaming experience.”