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GAMING BLEND
Midway Games Scaling Back Licenses to Improve ProfitsAuthor: Alex Thornton
published: 2008-10-16 14:38:24
Chicago's Midway Games has decided to place all their focus on their core properties and end partnerships with an unannounced group of partners. While big name licenses like DC Comics and TNA Wrestling have been spared but Aqua Teen Hunger Force Zombie Ninja Pro-Am will probably get the axe after abysmal sales and reviews.
Over the short term, Midway is forecasting a 3rd Quarter net loss of 70 cents per share (up from the previous estimate of 49) and shares have already dropped 13 percent this morning after the announcement. Still, Midway strongly believes that "ripping off the Band-Aid" now will benefit them in the future by saving fees on under-performing titles. A Midway rep told Edge Games that the relationships ended on "amicable terms" and that "it ended up being a good thing for all parties." |