Midway golden parachutes bronzed

Bankruptcy court approves incentive plan that sees key employees reap reduced bonuses, but company first needs to survive or sell for at least $30 million.

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Last month, bankrupt publisher Midway's proposed $8 million worth of employee incentive plans raised a number of eyebrows, most notably those of the company's creditors. Given that the highest outstanding bid for Midway is $30 million--just enough to cover the secured debt owed to owner Mark Thomas--other creditors cried foul at the idea of more than a quarter of the company's total worth being given away in bonuses.

Midway's current crisis casts doubt on when--or if--there will be a sequel to TNA iMPACT.

Court filings this week revealed that the publisher has an amended incentive plan in place. Earlier this month, the bankruptcy court approved changes to the plan that would throttle back the bonuses severely.

According to a GameSpot review of court filings, the revised plan consists of two milestone criteria. The first milestone will be reached if Midway enters into agreements to sell off assets that total $30 million or more. The second milestone will be reached when such deals close, so long as the net sale proceeds still total at least $30 million. If Midway can present a plan to get out of bankruptcy that is then approved by its creditors, both milestones will be considered met.

As for how much the bonuses are, key employees that are part of the incentive plan will be able to split a collective bonus not to exceed $600,000 within three days of meeting the first milestone. The second milestone payment starts at $1 million to be divvied up by the key employees, with that pool growing by $75,000 for every extra $1 million the asset sale(s) brings in above the $30 million target.

Discussion

49 comments
CHILENO39
CHILENO39

GOOD THING THERE IS STILL CAPCOM!!!! I MEAN RATHER MIDWAY THEN CAPCOM IF YOU LOOK AT THE QUALITY OF THE GAMES RIP MORTAL KOMBAT.

abualwa
abualwa

thank you on this Great game

necronaux
necronaux

Bet the 'key employees' getting the bonuses aren't any of the actual workers (coders, programers, artists, etc.).

mrorang3
mrorang3

Poor Midway.......so great at one point, yet so "sucking wind" the next. Hopefully the majority of everyone here has been following the catastrophy that is the current management and accountants of this once great kompany (that one's for you Pangamaster). As everyone can agree Mortal Kombat as a whole has kicked every sort of ass, since it's first reveal many a moons ago. I remember walking into our local mall arcade (yes malls actually had these at one point, ha) and seeing that giant 50" projection tv blasting some sort of fighting game..... that looked like real life people!! I was hooked! And it wasn't long before I decapitating local cats, threating my parents with, "I'll "finish" you!", and trying to pull my face off ....so my skull could breath fire on someone! Yes, I was also a child of that generation where video game violence was the problem child for every "problem child". So needless to say, I've seen Midway at it's best, and now currently at it's worst. I don't agree with the switching of certain "key" members, the kick backs, and the retooling of their finances (especially at this point). it almost sounds like they are trying to break even, regardless if the company survives or not. Even if it survives, I think they might even still sell of the rights to other groups and simply dissappear. Too be honest, it's the programmers we all love and serve, not so much the "master" (Midway as a whole). Once the company splits, regardless of how or why, the programmers will scurry off and join other companies, or start up their own. I'm down with the idea presented in an article wrote on Joystiq....... it was something like, "....if the production and development team of the current MK series leave Midway, they will more then likely start up a seperate company (hopefully with the MK license in tow). Hopefully all works out for the best, and although I love reading peoples comments, here are mine on some of yours: Pangamaster - Tearo only used the "k" out of place once, was it really worth a comment?? Unless of course you think the MK is spelled "mortal combat"?? THen it would be two, but alas the latter word is spelled with a "K"....for effect I think. CombatSoldier - You are not selling yourself very well of being "older" and of that generation. I'm a mere 30 years old, a combat vet too, and would never give someone the time of day for bad mouthing a video game company. Granted I will give time for reading everyones comments, and inspiring myself to write all this dribble (which is what it is, retarded dribble). I'd guess and say you are probably literally 25, did the Iraq/Afgan thing, and find being confrontational a "rush". When you start a post with "I don't care what any of you think...", you're bound to get some "ass-clown" to respond back with something other then your opinion.....giving yourself the justification to call them said ass-clown. But don't get me wrong ..... dRuGGeRnaUt did sound a little "tool-ish", and called you ignorant...... plus I like the use of "ass-clown", never gets old sir. dRuGGeRnaUt - If something rocked back in the day, it does not by definition suck today. Blame the people, not the company. It's like tree hugging liberal hippies saying, "we hate the war in Iraq, but support our troops!" It's the liberal tree hugging hippies that screa,. "F all soldiers, currently assigned, since the administration now sucks. It's an odd reference, I'll admit, but the point is there....... you earned the ass-clown hat appointed to you. J0nGalt - compton777 wasn't that bad?? He spelled out a sound for emphasis, forgot a puncuation or two, and then used "da" instead of "the"?? Who hasn't enjoyed say "da" instead" of "the". I live for the chances to say "da"...plus my wife is an english major and it pisses her off. Ok, I'm done, and my lunch break is technically over. Thank you everyone for allowing me to waste someones time for having to read such a long "comment" in such a skinny column. Later!

pilot_riaz
pilot_riaz

Don't worry as companies go under, new companies will form and then there will be new style of fighting games

Jedilink109
Jedilink109

Ugh. This sucks. All these game companies going under because the economy sucks. :(

Pangamaster
Pangamaster

Tearo: you first need to stop replacing ur c's with "k's", u have obviously played waaay too much mortal combat. and besides the gore mk has nothing going for it. saying that it will still be sad to see this company go away.

enix165
enix165

Well, I thought Mortal Kombat was pretty boring anyways, I'm not into gorefests or 2D fighters, and the new Ready 2 Rumble's supposed to be terrible...who's betting on Activision or EA to buy them out? =P

tearo
tearo

[This message was deleted at the request of the original poster]

tearo
tearo

CombatSoldier. I am a "young" kid that my age is "less of 18" And I still love midway. The Mortal Kombat franchise is my favorite game series of all time. My older brothers were probably games of your generation so I grew up next to a sega genisis playing MK1 all the way to UMK3. MK vs DCU is a great fighting game with great fighting mechanics,I know it's missing the over the top gore and the extra kontent midway supplied us with in MK: DA and MK: D but still.I enjoyed MK vs DCU and I support midway as they have brought Mortal Kombat and other hits like Blitz and involvement in the unreal tournament. So yes,there is hope in some young gamers after all :P

J0nGalt
J0nGalt

Its official. Compton777 raped the english language and then mutilated grammar afterwards just to be thorough.

compton777
compton777

& ummm but da tna game compared to svr 2009 sucked ass

compton777
compton777

[This message was deleted at the request of a moderator or administrator]

Xzakuter
Xzakuter

-I agree with 'combatsoldier' Midway is a classic brand and they continue to show that.(from my P.O.V.) I'd like to see more Mortal Kombat please.

Leonagard
Leonagard

[This message was deleted at the request of the original poster]

combatsoldier
combatsoldier

Listen ass clown. You obviously are a kid that is of the age of 18 or less. So son let me explain something to you. Just because you dont like there games doesnt mean not everyone has to agree with you. See us adults as in people that are over 25 and did things like fight in wars and change your diapers may not see it the way you do. I dont like all midway games but MK Vs. Dc. happened to be my fav. fighting game last year and one of the best in recent years. Just cause you dont like it doesnt mean everyone feels the same way. So shut up and get over yourself kid. Midway is a legend and your just a nobody. Now who is the ignorant one little punk.

dRuGGeRnaUt
dRuGGeRnaUt

@combatsoldier: you will blindly buy bad games from them even when you know they are bad because you have played their games for along time?? man you are the definition of ignorant, thank you for supporting game companies that make a living in publishing garbage. Midway IN ITS DAY was an amazing developer, but that doesnt mean anything now. GET OVER IT

combatsoldier
combatsoldier

I love midway and dont care what any of you think. For us older gamers known as adults have been playing midway games since the early 80's. It is disgraceful to come on here and see the lack of respect this gen of gamers gives to legends such as midway. they revolutionized the gaming industry from the days when arcades were the only way to game. Fine things change and evolve but never forget where gaming has come from. The roots of gaming are owed to midway. Midway I will always support you in good and bad.

Trainz2006_fan
Trainz2006_fan

I thought Stranglehold was a pretty good game. Looks like we wont be seeing a sequel.

corkyhookahking
corkyhookahking

idonyo the Mortal Kombat franchise is the only reason anybody would buy midway and pilot_riaz it's true that if the games fun it's good but mortal kombat is known for the gore so why change now.

pilot_riaz
pilot_riaz

I was playing MK Deception Xbox 1 game last night and Xbox Live works but no one was on it. Why is no one on Live on these old games anymore ??

ldonyo
ldonyo

Who in their right mind would buy Midway?

pilot_riaz
pilot_riaz

Some say Mk vs DC Universe was not so great because there was no Gore. So what if there is no Gore, so long as the game is fun it is great. SF IV has no Gore and yet it scores high in the reviews. It is fun that's why.

pilot_riaz
pilot_riaz

they have limited vocabulary, their english is limited so they keep sayng "key"

Sniper
Sniper

For the love of God, could GameSpot please stop saying "key"? Everything is key. Key this. Key that. If a "key employee" is a manager, then say "manager."

marxthenoob
marxthenoob

who cares midways been falling off since ps1 if you countinoulsy put out crap your sales will also be crap so sorry if you like nba jam but that was the last good midway game i played.anyone remeber spyhunter pure crap,not the original that was a classic.when you are an arcade company that just ports crappy remakes(n.a.r.c,damn you ragen)ypu end up in the crapper where you belong

Swampthing
Swampthing

Um... missing the point guys by saying "Midway wouldn't exist" and people worked their "butts off." Essentially Midway doesn't exist anymore. It IS dead. If everyone else got an "A" in the class, the class would be a success. Midway wasn't. It isn't. It's over. You have to grasp that concept before you understand who deserves what... You also have to understand there are tons of low level workers who worked their "butts off" as well who won't get bonuses, yet those who made terrible decisions, didn't listen to the public over the flaws in their games, made the decisions to keep selling 4000 versions of Mortal Kombat, spent money in the wrong areas, etc... they deserve bonuses, you say? When those decisions forced the company into bankruptcy, no matter how hard they "worked" they still made the wrong decisions, and there should be no reward for that.

duke-nukem11
duke-nukem11

ahh midway..... great days. and it whould suck not to see tna 2.

Gao_Wuji
Gao_Wuji

I was always hoping they would bring back the Mortal Kombat Mythologies series. But give it an action adventure type gameplay rather than platforming like they did with Sub-Zero.

pilot_riaz
pilot_riaz

Expecting Wheelman and some more Mortal Kombat games, MK vs DC Universe 2 and this time with gore lol

firehawk998
firehawk998

A lot of people knew this was going to happen anyway. I mean when they werent in Bankrupcy other than Mortal Kombat games what games were you expecting from Midway ?

Baconbits2004
Baconbits2004

Swampthing, I think a better analogy would be a child who got perfect A's asking for a reward... while everyone else in his class did badly. Mortal Kombat vs DC was one of Midways best selling games, you can't blame Ed Boon if other people within midway aren't providing the same success that he and his team have provided. Now... surely there are some people who don't deserve any bonuses at all, but Midway wouldn't even exist right now, if it weren't for the success of Mortal Kombat, so surely, the Mortal Kombat team deserves a little extra.

Sepewrath
Sepewrath

Shame to see Midway go belly up, they made some solid titles in the past. I would love to see them come up with a plan that would allow them to survive. However like someone said, bonuses should be reserved for good times, not were on the brink of collapse time. Also I'm sure those key employees aren't starving and need those bonuses to pay their rent. If anything they should be looking out for the people who if Midway does go under will have a problem putting food on the table, not the guys who will have no problem getting another "key" position with another developer.

nurse_tsunami
nurse_tsunami

I am kind of surprised no one has snapped up the Mortal Kombat IP by now. I kind of figured that would be out the door once they hit bankruptcy. I guess that once venerable IP has lost its shine now. Still you'd think with the success of Street Fighter 4 someone would want to bring MK back to its peak.

GeigerdolylWodd
GeigerdolylWodd

Unreal Championship 2 the Liandri Conflict was a decent one. They helped Epic Games make that one

Gao_Wuji
Gao_Wuji

As on of the older publishers, one I remember from my childhood, and one of the few Midwest based ones, I will be truly sorry to see them go. For all the mistakes they've made and aweful games they've made in recent years, they did some amazing stuff in the past, and you hope to see companies like that return to their glory days at some point.

Jade_Monkey
Jade_Monkey

I can't think of one game I have played that was either published or developed by Midway that I would give higher than an 8 out of 10. They just haven't wowed me so I can't say i'll feel sorry if they go under or cease to really exist.

TheCyborgNinja
TheCyborgNinja

Midway's had its ups and downs. I'm kind of sad to see it going down in flames. Wheelman and MK vs DCU were decent, and TNA impact! was a solid first effort for a wrestling game. They were just starting to get their act back in order and I guess it was too little, too late.

robfield
robfield

Midway brought this on themselves when they kept releasing mediocre to bad games no one wanted to buy. I know everyone at the company isn't to blame, but seriously, their games had been horrible these past years.

Sandrock323
Sandrock323

I'm waiting on Midway to die before I buy Wheelman.

Red122
Red122

Kinda sucks midway is in bad shape but hey when you produce alot of crap games what else could have happen? I mean really its true look at Atari. Mortal Kombat could have been and should have been awesome maybe whoever gets it now will do better with never know.

Windblade91
Windblade91

except these ppl work for their butts off for the bonus so in reality they SHOULD be paid if you worked 24/7 for a company with promise of bonus and then your employer says "sry bankrupcy you get no pay" how ticked off will u be?

Swampthing
Swampthing

These companies still DON'T get it. No one, repeat NO ONE, deserves a dime in "bonus" pay if your company is filing for bankruptcy or asking for a bailout with taxpayer money. Reminds me of a little kid who says "Hey I got an A in Algebra, mom... reward me..." when he fails the whole grade. If you fail completely, your little achievements mean naught...

athenian29
athenian29

Soooo, does this mean Midway is staying afloat? If that's the case, then bravo. We need more publishers to stay out there. Competition inspires quality.

otanikun
otanikun

Which is something that should have happened before Midway put it's self into this kind of crisis, at least we know that they'll be back on track in due time.

GatCloudX
GatCloudX

make an amazing mortal kombat game or single handedly bring back arcades then you will be saved

ivan_the_one
ivan_the_one

midway is only worth 30 million? that's a bargin!