Midway Has Poor Christmas

Haven and Dr. Muto?the twin terrors of platform gaming last holiday season?weren't enough to save their publisher from falling into the red.

Midway Games confirmed today that they lost money last quarter (the three-month period ending December 31) and will probably lose money in the current quarter as well, as disappointing sales of their holiday titles hit their financial figures where it hurt.

For the fourth quarter, the company lost $25 million, nearly ten times the $2.7 million they lost the same time last year, from revenue of $80.2 million. This is down from the profit of $15 to $40 million Midway predicted they would take in at the start of the quarter. Although Mortal Kombat: Deadly Alliance was a big hit for the company, other Christmas releases?including disappointing platformer Dr. Muto and, erm, other disappointing platformer Haven: Call of the King?performed significantly under expectations in the marketplace.

Midway said that it expects to lose between $3 million and $5.5 million before taxes for the current quarter ending March 31. This figure doesn't include the $6.2 million charge they will take for cutting staff and closing development offices in Milpitas, CA.

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