Midway Q1 in line with expectations

Publisher's revenues, losses both growing as company prepares for next generation of consoles.

Midway Games released its first-quarter financial results today, operating at a loss for the 12th time in the last 13 quarters. For the three-month period ended March 31, Midway brought in $15.4 million in revenue (an 11 percent increase over the same quarter from 2005), but put up a net loss of $22.6 million.

Midway CEO and president David F. Zucker said in a statement that the company was making progress toward its objectives for the year, noting that it met its guidance for the quarter as well as analyst expectations.

"Although 2006 continues to be a transition year for the industry, we are committed to showing modest revenue growth in spite of the overall industry downturn," Zucker said. "We are focused on our goal of increasing our market share early in the new console cycle. To that end, we are concentrating our resources on developing what we believe will be some of the best technology and highest-potential intellectual properties in the industry for the next generation consoles."

With the industry expected to continue its slump this quarter, Midway's expecting its own numbers to follow suit. For the three months ending June 30, Midway is projecting $32 million in losses on $25 million in revenues. For its second quarter last year, Midway posted a loss of $29.9 million and $36.9 million in revenues. The company's key titles for the quarter include Rampage: Total Destructions, the PC real-time strategy game Rise & Fall: Civilizations at War, and MLB Slugfest 2006.

With the Wii and PlayStation 3 slated for release later in the company's fiscal year, Midway is expecting its business plan to start yielding results and for its losses to slow. For the year, it is expecting total revenues of $155 million, and a net loss of $66 million.

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Discussion

18 comments
nellyp
nellyp

I used to buy Midway games but they cancelled the majority of their Gamecube support...perhaps they don't want my money. Hopefully with the Nintendo Wii they will make some great games that will appeal to gamers and they will sell well and continue to support the Wii.

Fallout_red
Fallout_red

I hope MK:Armageddon changes everything for Midway. Kan't wait.

sabru8
sabru8

some good will come out of this for sure.

Splintersixcell
Splintersixcell

Midway, Do your best and we will take care of your profit

chrisdojo
chrisdojo

hopefully they will go to developing more on the Wii since it is cheaper to develop for.

soulknight63133
soulknight63133

Gauntlet 7 could've been a great title if they made it with more depth and deeper gameplay. MK: Shaolin Monks was actually more immersive.

korn18m
korn18m

Tergeoglou, don't forget to metion that the "cheap" games you mention are still $20. Midway doesn't make money off used game sales. $20 could be use toward 1/3 the purchase price of a game actually worth playing, or it could be used towards the purchase of other, older games that are now $20 and easily worth that price. (i.e. Resident Evil 4 GCN, God of War, etc.)

tergeoglou
tergeoglou

Man Midway shape up! Don't go the way of acclaim. You were always the stronger one. I have faith in you. People we need devine intervention. Go now and buy a game from midway. Theres plenty and most are cheap, and awful. Cmon itll be good for a laugh, and maybe an understanding of why they are in financial trouble.

leo31206
leo31206

Think the only game I ever cared to play of their's is mortal kombat. Haven't really enjoyed that one too much since the second.

shmave05
shmave05

Can't wait for MK: Armageddon.

SCARFACELP
SCARFACELP

they have history , I hope they get their act together and give us some good new games to mess around with.

blackIceJoe
blackIceJoe

Thats cool I just hope they will be fine and them not go in the red instead.

runstalker
runstalker

Never counted them as my favorite game publisher, but I like Midway in the same way I like Activision. I admire them. Unlike a company like Atari, which has ZERO connection to the original Atari, Midway and Activision are good 'ole western game developers with a strong lineage.

tmatte
tmatte

Haha F. Zucker... I almost read it wrong.

korn18m
korn18m

Man, the X360 early release really put gaming growth at a stand still.... alot of game developers have been reporting financial loss since it released. Hopefully in the future, consoles will release a little closer together to avoid hurting the industry like this.

ian_fisher
ian_fisher

Hopefully Midway will bounce back since they have always been a solid company and since they're based in my hometown of Chicago.