Midway beats sales projection, still loses money

First quarterly report for Chicago-based publisher's new interim president and CEO continues string of losing quarters.

Midway interim president and CEO Matthew Booty was on the job for less than two weeks of the publisher's first fiscal quarter ended March 31, so it should come as little surprise that the publisher's quarterly financial report details a ship not yet righted. The company today released its preliminary results for the first three months of the year, showing better sales than last year's first quarter, but also deeper losses.

Despite a lack of major North American releases, Midway's net revenues for the first quarter totaled $29.9 million, up from $11.1 million for the opening three months of 2007. However, the publisher reported losses of $34 million for the quarter, versus $19.8 million for the same stretch of time last year. The last time the publisher reported a net income for a quarter was the holiday quarter of 2004, when the bottom line was bolstered by the original NBA Ballers, Midway Arcade Treasures, and Mortal Kombat: Deception.

The company's releases for the first quarter of 2008 included a downloadable Stranglehold expansion and European launches of Unreal Tournament III, BlackSite: Area 51, Game Party, Cruis'n, Foster's Home for Imaginary Friends, and the PC edition of Hour of Victory. Last year, the company had no new releases in the first quarter, but reported strong continued sales from the previous holiday quarter's hits like Happy Feet and Mortal Kombat: Armageddon.

Looking forward to results from the current quarter, Midway expects to post revenues of $18 million with a net loss of approximately $.38 per share (the company's first quarter loss came out to $.37 per basic and diluted share). The company's only release of note for the quarter is NBA Ballers: Chosen One, which has been released worldwide on the Xbox 360 and in North America for the PlayStation 3.

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Discussion

67 comments
thug_angel123
thug_angel123

hour of victory was a big mess,big mess midway...

iiplayboy
iiplayboy

Midway is an old skool company i remember them for their Mortal Combat series, but hopefully URT 3 and This is Vegas will help boost their revenue..

peon_frenzy
peon_frenzy

Midway is just a bad company all around. In Chicago they hire interns at $10/hr and force them to work crazy hours and do the same work as salaried artists. Instead of trying to nurture them and help them become better artists, the mentality at Midway is "more cheap labor." If they keep operating that way it will eventually go under

Sins-of-Mosin
Sins-of-Mosin

MaximumD - Plent of piracy on the consoles. The difference is that it usually takes a adult to play a PC game while there are plenty of kiddes for the consoles. I do agree that the high costs of hardware and the games themselves are hurting the industry. Cry all you want about piracy but it's corp greed thats driving up the costs.

nate1222
nate1222

There's something you uber-geeks need to bare in mind: while "we" go to sites like GS and rant and rave about games, the average person could really give a ****. "We" might be willing to spend $400 per console (some of us more than once) and $60 per "game". But most people aren't going to put up with that ****. And the gaming industry has gotten SO EXPENSIVE TO MAINTAIN that it depends increasingly on the "general" population. That same "general" population (you know - most people) will ditch gaming if it gets too damn expensive. I'm a LIFE LONG gamer and I've decided that I'm NOT moving into the 7th gen. Think about that.

LindBergh2007
LindBergh2007

See even nate1222 agrees with me. 1984 may repeat itself.

JangoWuzHere
JangoWuzHere

wow thanks maxium break wii and PC owners hearts why don't you you ass

ctg867
ctg867

UT3 was the only good game out of that bunch. Kinda said IMO. Eidos/SCi, Atari/Infrogames, and Midway need to get together and make one big company.

jtthegame316
jtthegame316

MaximumD no wii gamer buys third party games that comment is wrong. resident evil 4 i have wii edition and know of a few people that have it. sonic and mario at the olypics although nintendo characters are in there the game is by sega so technically that is third party dispite sega being allowed by nintendo to use there charaters. so yeah no matter what console you own you will have some games that are third party.

nate1222
nate1222

I've decided to NOT invest much into the 7th generation (PS3/360) of gaming. I'm actually happy with the 6th gen (PS2/XBox/GC). The high ass development costs, $400 consoles, $60 games and "pandering" concepts - like MK vs DC - are going to cause a major industry crash.

enoslives7
enoslives7

Midway's bread and butter was arcade to home conversions. Now that arcades have died out, they have lost their nitch.

MaximumD
MaximumD

They should just screw PC gamers and drop them. The privacy is bad. Drop Wii games also because no Wii gamers buy 3rd party games. They should just concentrate with a new IP for the PS3/X-BOX 360 and it will sell like hot cakes.

bunnyman14
bunnyman14

Did no one catch the irony of my post?

krapsrocks
krapsrocks

Wow with all of those "great" releases how could they be losing profits? cough......cough.....

Hillsy_
Hillsy_

I liked Stranglehold the most, but also found no one to play online with. Blacksite Area 51 was okay, nothing new. It did have some good moments. Hour of Victory has to be the worst FPS in the history of game making. Dreadful game. I would prefer to see a Gauntlet game too, but we'll have to see. There is one in the making for the DS though. I hope they turn things around though, never like to see a game company in trouble.

speedjunkie4
speedjunkie4

If Midway wants to stop losing money, stop making crappy games!

frankeyser
frankeyser

not many midway games are worth spitting on. every now and then they come up with an ok idea but then they make ten games within a year off of it totaly ruining it.

Nineball2112
Nineball2112

You have to admit... Those games that are listed probably don't really do it for most gamers. Tremblay343 said: "They're relying too much on older franchises." That nails it right there. They really do need to come up with some new ideas.

Avenger1324
Avenger1324

Given the almost unanimous crticism of Hour of Victory, and the poor reception to Blacksite, it isn't really surprising to see Midway floundering

ryo_strife24
ryo_strife24

I hope they can turn this around. People may MK vs DC but I really want to see how it plays out. Minus the fatalities I see this being a very solid fighting game. If you look at the big picture with fatalities what more could can you do? How many ways can Scorpion take off his mask and roast someone? I think they should release Smash TV for XBL and PSN, I've been playing that like crazy on my emulator lately. I know this may be a bit off-topic but I would like to see a fighter / wresting game with AKI's fighting engine (No mercy, Def Jam Vendetta, FFNY.) I think that could be another idea for them to turn a profit.

sirpyke29
sirpyke29

Wow, doesnt sound like Midways doing that good. I didnt even know they took fatalities out of the MK DC game, that was normally the draw in for MK fans. I personally like stranglehold but 15 Euros for the expansion pack? that is like 25 bucksCanadian for it and I would rather spend that on a game that has multiplayer still going! I still think as well that the best MK was MK3, once it went 3d it kind of took a dive. I unfortunately didnt like any of the 3d ones at all. Its funny how well games and game systems are doing really well but a lot of developers/publishers and whatnot seem to be reporting losses other than the Big Boys like EA and them. Come on Midway kick it up a notch!

tomadonxl
tomadonxl

Midway is taking to many risk with their games. MK vs DC is very risky and not because they are taking out Fatalities but because they will have to have great game play to make it work. Also when you are depending NBA Ballers to pull your company out of a slump god help you. What they are going to have to do is stop wasting development money on crappy games and cut losses while they develop a quality IP.

Fat_Boy_PT
Fat_Boy_PT

This stranglehold expansion really baffles me. NO ONE plays it online and they want 15 euros for it. Even the new CoD4 maps are 9.99 euros!!!! Had they made a few more singleplayer levels i might pay for it, but this is only for online. They lost time and money doing an expansion for a game no one plays and they want profit? Midway is dead.

hotrider12
hotrider12

midway need to make another gaunlet game. the last one "sword of the 7 sorrows" was crappy the begining was excellent but the rest of the levels was horrable

raghraghragh
raghraghragh

MK vs DC should turn this around! Hour of Victory sucks though!

arkadiyk
arkadiyk

midway is one of the few and i mean few who are reporting lossess, compared to ea, and activision. who are doing well.

gin_rummy89
gin_rummy89

toddze I'll quote myself "you should wait to bash the game until after you see more then a 60 second trailer... It will be different, but who knows it could be great" I am not singing this games praises it may flop... but Midway needs money, and they can't save there company by shelling out let another tired 3D MK game.

toddze
toddze

gin_rummy the problem is we mk fans love our blood and gore that mk offers. now i would love the idea of getting noob siabot to pull his hammer out and crush batmans skull into a pancake and watch the gushing blood come out of the spot where his head was suposed to be, and then rip his heart out to stop the gyser that is coming out of his neck. but no there will be none of this in the mk vs dc which ruins mk for the majority of mk fans. the gore is why we loved the mk series. Otherwise there are many other good fighting games out there. It saddens me but i will be picking up soulcalibur 4 and mark this game off my list. when/if midway makes a real mk game i will get me a copy, however it seems midway is doomed and ill never see a new great mk :(

gin_rummy89
gin_rummy89

Things are not looking good... Almost everything Midway has released in the past couple years has been junk. MK vs. DC is a jump the shark momment in Midway's history... IMO it will decide their fate. I personally am a big fan of DC comics, so I am looking forward to this one, but it seems that most of the MK fanbase hates the idea... I say you should wait to bash the game until after you see more then a 60 second trailer... It will be different, but who knows it could be great!

luc11044
luc11044

I look at all the titles they mention in the article and I didn't even buy one. I don't even think I even rented any of these titles. Is it any wonder why they are losing money??

lukavrc
lukavrc

I am very sorry bunnyman14, but your sentences are just as pathetic. wow, none of this make any SENSE to me... this is such horrible sence, "spellling" with 3 l's, blah blah. spell check, anyone? Try to stay in school a while longer before judging others please Anyway, it sucks that the shareholders have to sink with the company

bunnyman14
bunnyman14

KamuFei your sentences did not make sence; it is not the spellling, the grammar, or the fact that one is a fragment, it is just bad sence. Try and arrange your thoughts a little better. Anyway, I do agree, Mortal Kombat is their big hitter and they are killing it.

badman11226
badman11226

Wow midway sucks on the next-gen. But when i heard that there will be no gore or even blood in the MK vs DC game this game is going to failed. Come on people even the last MK game was a failure. They either going to be bankrupt or be buyout by EA(seen they are buying out every game company)

ps3thabest
ps3thabest

damn hopefully dat mortal kombat vs dc can turn it around

jogunther
jogunther

I bought my copy of UTIII here in the U.S. Too bad the industry is being squeezed so hard right now.

t37nguye
t37nguye

Midway beats sales projection, still loses money......... and with MK vs DC they will surely go bankrupt, worst decision ever!

KamuiFei
KamuiFei

MK died once it went 3D. And apparently its starting to show.

DrKill09
DrKill09

Midway are going to lose more money when MK vs DC hits, cause they alienated so many MK fans. I'm still looking forward to Blitz the League II, though... unless they decide to throw the Care Bears in it, and give it an E10 rating! :lol:

sj420
sj420

top down, online 4 player, widescreen smash INTERNET. (pc first - yeah right)

batsugun
batsugun

When are they going to do the Smash TV remake they been talking about for like 10 years?

TheWraith77
TheWraith77

In my opinion, I don't think their next MK game is going ot help things since they're going to be watering it down because they added the DC license to it...

destrozz
destrozz

I would have enjoy Stranglehold more if it where a cartoon, because Chow Yun Fat slid around the game like he was greased with cooking oil, and he could dodge bullets at point blank lmao.

ColdfireTrilogy
ColdfireTrilogy

TWiSTEDmerc your dead wrong. Most PC gamers do not pirate.. and even then, a Multiplayer tiered game like the Unreal Tournament series is really useless as a pirated copy as it is lacking what makes it strong ... online gaming. What they need to do is release PC games that actually cater to the system not to some dumbed down console port no one on the PC would ever pay 59.99$ for .....

Tremblay343
Tremblay343

They're relying too much on older franchises. They've used up all their older games to the point where im gonna throw up if i see another one...coughMKcough. What they really need is a total overhaul. Stop rushing (notice the word rushing) all your games out and hoping people will buy some half @$$ed game. Stranglehold and Area 51 both had the potential to be great games, even if either wasn't very original. Just take a break (brake?), think of of something competely fresh, hype the sh!t out of it, and wait for money to come in. Of course the main problem is coming up with good ideas lol. But with the kind of games they used to release, there's no reason why they can find the talent to pull something like this off.

09231991
09231991

I agree nate1222, I loved the two Suffering games and have wished and dreamed and hoped for a third one on the next-gen consoles but they haven't. Why the hell are they wasting time on stupid games like happy feet, fosters and w/e the hell dance party is. Finish and focus on the new MK game and please make another Suffering game, the first two on PC and Xbox were amazing.

ColdfireTrilogy
ColdfireTrilogy

Well take a lesson, dont shaft PC players with console crap .... UT3 wouldve sold EXCELLENTLY had it actually been up to par with its predecessors ... but they still haven't got a non console ui for the whole game ... our web browser still stinks and the game play just feels lacking ... hence why so many people went right back to the old versions.

herodotus2006
herodotus2006

Midway releasing cheap ports from consoles (ala Stranglehold) to PC then demanding $80-100 is an unfunny joke (similarly with CB's Jericho on Games For Windows). On the other hand we get UT3 ($100) on the PC and really it plays as a Demonstration of the Unreal3 engine, with the once strong SP campaign just a string of DM's loosely connected by flaky cutscenes that seem left over from GoW. Even the much touted Blacksite was an abysmal mess. Too many Devs closing their doors at the moment to bank on one title (DC V MK) to rescue a company. Take a leaf from Auran's closed book ("Fury").