Top Gaming Stories

Print This

Midway's money troubles worsen, time running out to repay debt

gamepro.com | December 05 2008

The struggling publisher of Mortal Kombat vs. DC Universe is running out of options after a key investor leaves the company drowning in debt.

Midway's money troubles worsen, time running out to repay debt

NOM

Midway Games is running out of time. The much-loved, much-respected publisher of classic arcade games such as Mortal Kombat, Defender, Smash TV, and Spy Hunter may default on $240 million in debt according to the Chicago Tribune.

An integral part of the video game industry in the 80s and 90s, the arcade-focused Midway Games has struggled mightily to transition to a gaming world ruled by home consoles such as the Xbox, PlayStation, and Wii. Midway's latest game, Mortal Kombat vs. DC Universe, is seeing strong early sales. Unfortunately, that may not be enough to save the cash-strapped publishing legend.

Making matters worse is that Sumner Redstone, Midway's largest shareholder, just sold off his 87% stake in the company for a mere $100,000 (plus $70 million in debt) with no advance warning to Midway. And today, Midway warned that it might default on $240 million in debt, if bondholders request full repayment as is expected.

What would a post-Midway world look like? Can Mortal Kombat find a new home? Leave your thoughts in the comments below.



READ: "The Secrets of Mortal Kombat," GamePro's interview with MK creator Ed Boon

Get Previous | Get Next
View all

Release Calendar

Mar 31
to
Apr 07 		Mar 31 Apr 01 Apr 02 Apr 03 Apr 04 Apr 05 Apr 06