Midway Games Inc.
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Midway Games Inc., known previously as Midway Manufacturing and Bally Midway, and commonly known as simply Midway, was an American video game developer and publisher. Midway's franchises included ''
Mortal Kombat ''Mortal Kombat'' is an American media franchise centered on a series of video games originally developed by Midway Games in 1992. The development of the first game was originally based on an idea that Ed Boon and John Tobias had of making a v ...
'', ''
Rampage Rampage may refer to: Places * Rampage Mountain, a mountain in Montana People * Quinton Jackson (born 1978; nicknamed "Rampage"), American mixed martial artist and actor * Randy Rampage (1960-2018), Canadian musician * Rampage (rapper) (born 1 ...
'', '' Spy Hunter'', '' NBA Jam'', ''
Cruis'n ''Cruis'n'' is a series of racing video games originally developed by Eugene Jarvis for Midway Games and published by Midway and Nintendo. The series distinguishes itself from other racing games with its over-the-top presentation and fast-pace ...
'', and '' NFL Blitz''. Midway also acquired the rights to video games that were originally developed by Williams Electronics and
Atari Games Atari Games Corporation, known as Midway Games West Inc. after 1999, was an American producer of Arcade game, arcade Video game, games. It was formed in 1985 when the coin-operated Arcade game, arcade game division of Atari, Inc. was transfered ...
, such as '' Defender'', '' Joust'', ''
Robotron 2084 ''Robotron: 2084'' (also referred to as ''Robotron'') is a multidirectional shooter developed by Eugene Jarvis and Larry DeMar of Vid Kidz and released in arcades by WMS Industries, Williams Electronics in 1982. The game is set in the year 2084 i ...
'', ''
Gauntlet Gauntlet or the gauntlet may refer to: Common uses *Gauntlet (glove), protective gloves used as a form of armor *Running the gauntlet, a form of physical punishment Arts, entertainment, and media Fictional characters *Gauntlet (comics), a Marvel ...
'', and the ''
Rush Rush(es) may refer to: Places United States * Rush, Colorado * Rush, Kentucky * Rush, New York * Rush City, Minnesota * Rush Creek (Kishwaukee River tributary), Illinois * Rush Creek (Marin County, California), a stream * Rush Creek (Mono Cou ...
'' series. The company was founded as Midway Manufacturing in 1958, as an amusement game manufacturer. The company was then purchased by Bally Manufacturing in 1969, and used the Bally Midway name in the 1980s. In 1973, Midway moved into the interactive entertainment industry,
developing Development or developing may refer to: Arts *Development hell, when a project is stuck in development *Filmmaking, development phase, including finance and budgeting *Development (music), the process thematic material is reshaped * Photograph ...
and
publishing Publishing is the activity of making information, literature, music, software and other content available to the public for sale or for free. Traditionally, the term refers to the creation and distribution of printed works, such as books, newsp ...
arcade video games. The company scored its first mainstream hit with the U.S. distribution of '' Space Invaders'' in 1978. Bally then merged its pinball division into Midway in 1982. In 1988, Midway was purchased and re-incorporated by
WMS Industries Inc. WMS Industries, Inc. was an American electronic gaming and amusement manufacturer in Enterprise, Nevada. It was merged into Scientific Games in 2016. WMS's predecessor was the Williams Manufacturing Company, founded in 1943 by Harry E. William ...
In the 90’s, WMS purchased Tradewest to bring home video game market in-house, with it becoming Midway Home Entertainment in 1996, the same year that Midway made its initial public offering of stock. In 1998, WMS spun off its remaining shares of Midway. Midway was ranked the fourth largest-selling video game publisher in 2000.Hong, Quang
"Midway Fourth"
'' Gamasutra'', February 1, 2000, accessed April 5, 2011
After 2000, Midway continued to develop and publish video games for home and handheld video game machines, but it experienced large annual net losses and engaged in a series of stock and debt offerings and other financings and borrowings. Sumner Redstone, the head of
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and CBS Corporation, increased his stake in Midway from about 15% in 1998 to about 87% by the end of 2007. In December 2008, Redstone sold all his stock and $70 million of Midway debt to Mark Thomas, a private investor, for $100,000."Redstone sells Midway Games to ease debt"
Reuters, December 1, 2008
In February 2009, Midway Games filed in Delaware for bankruptcy. Warner Bros. purchased most of Midway's assets, and Midway settled with Mark Thomas to relinquish his Midway stock and debt.Midway Games Inc. Current Report on Form 8-K
filed with the Securities and Exchange Commission on July 16, 2009
Bathon, Michael

''Business Week'', February 3, 2010
The
U.S. District Court The United States district courts are the trial courts of the U.S. federal judiciary. There is one district court for each federal judicial district, which each cover one U.S. state or, in some cases, a portion of a state. Each district cou ...
in Chicago dismissed a lawsuit alleging that former officers of Midway misled shareholders while selling their own stock. In 2010, the bankruptcy court dismissed claims against Redstone concerning his sale of the company to Thomas and approved Midway's plan of liquidation.Bathon, Michael
"Midway Games Wins Court Approval of Liquidating Plan"
''Business Week'', May 21, 2010
Midway terminated the public registration of its securities in June 2010.
U.S. Securities and Exchange Commission, filed June 9, 2010


History


Arcade games

Midway Mfg. Co. began in 1958 as an independent manufacturer of amusement equipment founded by Henry Ross and Marcine Wolverton. It was purchased by
Bally Bally may refer to: Places *Bally, a historical spelling of Bali *Bally (from the Irish ''baile'') or townland, a traditional division of land, as well as a common prefix in the names of settlements throughout Ireland *Bally, Bally-Jagachha, a c ...
in 1969. Bally, at that time, was a leader in the manufacture of slot machines."Williams-Bally-Midway the 'Roman Empire' of Gaming"
Gamester81 Enterprises, January 6, 2012
After some years making mechanical
arcade game An arcade game or coin-op game is a coin-operated entertainment machine typically installed in public businesses such as restaurants, bars and amusement arcades. Most arcade games are presented as primarily games of skill and include arcade v ...
s such as puck bowling and simulated western shoot-out, Midway became an early American maker of arcade video games. Throughout the 1970s, Midway had a close alliance with Japanese video game publisher Taito, with both companies regularly licensing their games to each other for distribution in their respective country. Meanwhile, Midway's breakthrough success came in 1978, with the licensing and distribution of Taito's seminal arcade game '' Space Invaders'' in America. This was followed by Midway's licensing and distributing the U.S. version of Namco's ''
Pac-Man originally called ''Puck Man'' in Japan, is a 1980 maze action video game developed and released by Namco for arcades. In North America, the game was released by Midway Manufacturing as part of its licensing agreement with Namco America. Th ...
'' in 1980, and its sequel, ''
Ms. Pac-Man is a 1982 maze arcade game developed by General Computer Corporation and published by Midway. It is the first sequel to '' Pac-Man'' (1980) and the first entry in the series to not be made by Namco. Controlling the title character, Pac-Man's ...
'', in 1982. Also in 1982, Midway became Bally Midway Mfg. Co. after Bally merged its pinball division with Midway. Three games released that year, including ''
Satan's Hollow ''Satan's Hollow'' is a fixed shooter released in arcades by Bally Midway in 1982 and subsequently ported to the Commodore 64. The arcade game uses the same flight-controller style joystick with built-in trigger as Midway's ''Tron'', released ...
'', were the first to feature the Bally/Midway brand. From the late 1970s through the late 1980s, Midway was the leading producer of arcade video games in the United States. Bally Midway was purchased in 1988 by the arcade and pinball game company Williams Electronics Games through its holding company WMS Industries Inc. and its name was changed back to Midway Manufacturing. Midway moved its headquarters from Franklin Park, Illinois to Williams' then-headquarters in Chicago, and WMS reincorporated Midway as a Delaware corporation. Although WMS retained many R&D employees from the original Midway, only two game designers were retained: ''
Rampage Rampage may refer to: Places * Rampage Mountain, a mountain in Montana People * Quinton Jackson (born 1978; nicknamed "Rampage"), American mixed martial artist and actor * Randy Rampage (1960-2018), Canadian musician * Rampage (rapper) (born 1 ...
'' designers
Brian Colin Brian Colin (born November 4, 1956) is an American video-game designer, artist and animator. Among his best-known works are the coin-operated arcade games '' Rampage'', ''Arch Rivals'' and '' Rampage: World Tour'' as well as ''General Chaos'' f ...
and Jeff Nauman. WMS obtained the right from Bally to use the "Bally" brand for its pinball games since Bally had completely left the arcade/pinball industry to concentrate on casinos and slot machines. Under WMS ownership, Midway initially continued to produce arcade games under the Bally/Midway label, while producing pinball machines under the "Bally" brand. In 1991, however, Midway absorbed Williams' video game division and stopped using the "Bally/Midway" label for its arcade games. In 1992, the company's '' The Addams Family'' machine became the best selling pinball game of all time. In 1996, WMS purchased
Time Warner Interactive Time Warner Interactive (Group) (TWI) was a studio within Time Warner and a predecessor of Warner Bros. Interactive Entertainment. It was formed in 1993 after Time Warner bought a controlling interest in Atari Games, and was active until 1996 w ...
, which included
Atari Games Atari Games Corporation, known as Midway Games West Inc. after 1999, was an American producer of Arcade game, arcade Video game, games. It was formed in 1985 when the coin-operated Arcade game, arcade game division of Atari, Inc. was transfered ...
, originally a part of Atari, Inc. Also in 1996, Midway changed its original corporate name, Midway Manufacturing, to Midway Games Inc., due to its entrance in the
home console A home video game console is a video game console that is designed to be connected to a display device, such as a television, and an external power source as to play video games. Home consoles are generally less powerful and customizable than ...
market. This was facilitated by WMS transferring its former home console division, Williams Entertainment, Inc., to Midway. The division had previously been known as Tradewest while part of the Leland corporation, which WMS had acquired in 1994. The original arcade division of the company became Midway Amusement Games and the newly created home division was named Midway Home Entertainment.Over the years, Midway's
arcade system board An arcade video game takes player input from its controls, processes it through electrical or computerized components, and displays output to an electronic monitor or similar display. Most arcade video games are coin-operated, housed in an arc ...
s included the following: Astrocade; MCR, MCR II, MCR III and MCR-68; T Unit (1993) and X Unit (1991–1994); Y Unit (1991–1992); V Unit (1994–1997); Wolf Unit (1995–1997); Zeus (1997–1999) and Zeus II (1999–2001); Seattle; Vegas; Quicksilver II; and Williams Z Unit (used only with NARC).


Spin-off and home video game focus

In 1996, WMS made a public offering of Midway stock and, at the same time, WMS transferred its video game copyrights and trademarks, including '' Defender,
Robotron: 2084 ''Robotron: 2084'' (also referred to as ''Robotron'') is a multidirectional shooter developed by Eugene Jarvis and Larry DeMar of Vid Kidz and released in arcades by Williams Electronics in 1982. The game is set in the year 2084 in a fictional wo ...
'' and '' Joust'', to Midway. In 1998, WMS spun off its remaining 86.8% interest in Midway to the WMS shareholders, making Midway an independent entity for the first time in almost 30 years.Midway Games Form S-3
filed with the SEC and dated on November 27, 2001
Midway kept Atari Games as a wholly owned
subsidiary A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a s ...
as part of this
spin-off Spin-off may refer to: *Spin-off (media), a media work derived from an existing work *Corporate spin-off, a type of corporate action that forms a new company or entity * Government spin-off, civilian goods which are the result of military or gove ...
. Midway retained or shared some of the WMS executive staff and used some common facilities with WMS for a few more years. Over several years, Midway gradually terminated all material agreements and executive overlap with WMS and had a declining number of common members of its board of directors, until it shared only one with its former parent company. In 1999, Midway left the pinball industry (it had earlier transferred most of its pinball assets to WMS in 1996 in exchange for video game assets of WMS) and changed the name of its "Atari Games" subsidiary to Midway Games West, Inc. to avoid confusion with Atari Interactive. On June 22, 2001, Midway announced that it was closing its arcade division due to a decline in the arcade market. Midway shut down Midway Games West in February 2003, but it remained as an entity. After losing money each year since 2000, Midway's losses accelerated in 2003, as it lost $115 million on sales of about $93 million. Despite these losses, the company was able to finance its business with stock and debt offerings and various credit arrangements. In 2003, Sumner Redstone, a significant minority shareholder since the company's spinoff, began to increase his stake in the company and soon owned 80% of the stock.Midway's 2005 and 2006 annual reports filed with the Securities and Exchange Commission, available on its website at www.sec.gov. In 2004, in an effort to expand its market share, Midway began a purchasing spree of independent video game development studios to strengthen its product development teamsMidway's May 2005 quarterly report filed with the Securities and Exchange Commission, available on its website at www.sec.gov. In April 2004, Midway acquired
Surreal Software Surreal Software was an American video game developer based in Kirkland, Washington, and a subsidiary of Warner Bros. Interactive Entertainment, known for '' The Lord of the Rings: The Fellowship of the Ring'', '' The Suffering'' and '' Drakan' ...
of Seattle, Washington. In October 2004, it acquired Inevitable Entertainment of Austin, Texas (which became
Midway Austin Midway Studios Austin (formerly known as Inevitable Entertainment) was a video game developer established by former Acclaim Studios Austin employees, founded as Inevitable Entertainment in 2000 and acquired by Midway Games in 2004. Responsible ...
). In December 2004, it acquired Paradox Development of Moorpark, California. On August 4, 2005, Midway acquired privately held Australian developer
Ratbag Games Ratbag Games Pty Ltd was an Australian developer of video games such as '' Powerslide'', '' The Dukes of Hazzard: Return of the General Lee'' and '' World of Outlaws: Sprint Cars 2002''. History Ratbag was founded in 1993 in Adelaide, Sout ...
. The studio was renamed Midway Studios—Australia. Four months later, on December 13, Midway announced to its employees there that it was shutting the studio down, leaving its employees based at that studio without a job. Two days later, on December 15, the studio was closed and their Adelaide premises emptied. During 2004 and 2005, Midway lost $20 million on sales of $162 million, and $112 million on sales of $150 million, respectively. Redstone voted his shares to elect his daughter
Shari Redstone Shari Ellin Redstone (born April 14, 1954) is an American media executive with a background in numerous aspects of the entertainment industry and related ventures. She currently serves as the non-executive chairwoman of Paramount Global (formerly ...
to Midway's board of directors and later as the chair of the board. On February 15, 2005, Midway signed an agreement with
Cartoon Network Cartoon Network (often abbreviated as CN) is an American cable television channel owned by Warner Bros. Discovery. It is a part of The Cartoon Network, Inc., a division that also has the broadcasting and production activities of Boomerang, Car ...
to publish games, based on properties, namely that of
Cartoon Network Cartoon Network (often abbreviated as CN) is an American cable television channel owned by Warner Bros. Discovery. It is a part of The Cartoon Network, Inc., a division that also has the broadcasting and production activities of Boomerang, Car ...
and
Adult Swim Adult Swim (AS; stylized as
dult swim Dult is a village in Batala in Gurdaspur district of Punjab State, India. It is located from sub district headquarter, from district headquarter and from Sri Hargobindpur. The village is administrated by Sarpanch an elected representati ...
and often abbreviated as s is an American adult-oriented night-time cable television Television channel, channel that shares channel space with the basic cable network Cartoon Network and is programme ...
, and had option to expand their own properties. Midway was ranked as the No. 4 video game publisher by sales in 2000. It was ranked as the No. 19 video game publisher in 2005 and had fallen to No. 20 in 2006, according to the magazine '' Game Developer''.Game Developer's Top 20 Publishers, 2006
from '' Gamasutra'', 2006, accessed April 5, 2011


Late 2000s and bankruptcy filing

In 2006 and 2007, Midway lost a further $77 million on sales of $166 million and $100 million on sales of $157 million, respectively. It continued to finance its business with debt offerings and other credit arrangements. As of 2007, Midway Games was engaged in a legal battle with Mindshadow Entertainment for the ''
Psi-Ops ''Psi-Ops: The Mindgate Conspiracy'' is an Action-adventure game, action adventure video game developed by Midway Games for Xbox (console), Xbox, PlayStation 2 and Microsoft Windows and released on June 14, 2004. The game was developed as a mea ...
'' video game rights. Mindshadow alleged that Midway copied ''Psi-Ops''s story from a screenplay written and owned by their client. On December 2, 2008, Judge
Florence-Marie Cooper Florence-Marie Cooper (February 9, 1940 – January 15, 2010) was a United States district judge of the United States District Court for the Central District of California. Early life and education Cooper was born in Vancouver, British Columbia ...
of the United States District Court for the Central District of California issued a ruling granting summary judgment on all counts in Midway's favor. Judge Cooper found no evidence of copyright infringement. On March 6, 2007, Midway reported that it had entered into a new $90m credit agreement with
National Amusements National Amusements, Inc. is an American privately owned movie theater operator and mass media holding company incorporated in Maryland and based in Norwood, Massachusetts. It is the controlling shareholder of Paramount Global. History The ...
, a company controlled by Sumner Redstone. Midway's CEO, David Zucker, stated that the introduction of ''
Unreal Tournament 3 ''Unreal Tournament 3'' (''UT3'') is a first-person shooter, first-person arena shooter video game developed by Epic Games and published by Midway Games. Part of the Unreal (video game series), ''Unreal'' franchise, it is the fourth game in the ...
'', and the company's growing success in mass-market games, were setting it up for a "significant 2008". On March 21, 2008, Zucker resigned as CEO. He was the third executive to resign from the company in three months. Succeeding Zucker as CEO was former Senior Vice President Matt Booty.Matt Booty appointed interim CEO
''Chicago Tribune'', 2008.
During the summer of 2008, in an effort to trim costs, Midway closed its Los Angeles and Austin studios.
filed with the SEC on April 6, 2009
These closures left Midway with four studios, in Chicago, Seattle, San Diego and Newcastle, England. During this time, Midway just released '' TNA Impact!'' and '' Blitz: The League II'' around September/October 2008, under the
Midway Studios Los Angeles Midway Studios Los Angeles Inc. (formerly known as Paradox Development) was an American-based video game developer. They are best known for fighting games such as the '' X-Men Mutant Academy'' and ''Backyard Wrestling'' franchises, as well as ...
office (before its closure) and the San Diego branch (Midway Studios San Diego/Midway Home Entertainment). In November 2008, Midway reported that its cash and other resources "may not be adequate to fund... working capital requirements" and that it "would need to initiate cost cutting measures or seek additional liquidity sources". On November 20, 2008, Midway retained Lazard to assist it "in the evaluation of strategic and financial alternatives".Midway Games Inc. current report on Form 8-K
dated December 4, 2008
The next day, Midway received a NYSE delisting notice, after its stock's price fell below one dollar.Midway Games Receives NYSE Delisting Notice
''Digital Media Wire''
Midway's last title, ''
Mortal Kombat vs. DC Universe ''Mortal Kombat vs. DC Universe'' is a 2008 fighting video game, developed and published by Midway Games. The last entry in the franchise before the company went bankrupt in 2009 and sold the franchise to Warner Bros. Interactive Entertainment ...
'', released around this time, in November 2008. On December 2, 2008, Sumner Redstone sold his 87 percent stake in Midway Games to Mark Thomas, a private investor, through his company MT Acquisition Holdings LLC. Thomas's company paid approximately $100,000, or $0.0012 per share. Thomas also received $70 million of Midway's debt that was owed to Redstone. National Amusements took a significant loss on the sale, although the loss allowed it to benefit from tax losses."Redstone Sells Midway for $100,000 to Ease Debt"
Gamasutra
In December 2008, Midway disclosed that it might default on $240 million of debt after the sale of stock to Thomas triggered clauses in two bond issues totalling $150 million of debt that allowed the bondholders to demand full repayment.Wong, Wailin
"Midway Games says it may default on $240 million in debt"
''Chicago Tribune'', December 5, 2008
In 2008, Midway lost $191 million on sales of $220 million, and Redstone's sale of his shares to Thomas eliminated Midway's ability to take advantage of accumulated net operating losses and other tax assets potentially worth more than $700 million. On February 12, 2009, Midway and its U.S. subsidiaries filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. The company began to operate as a
Debtor in possession A debtor in possession or DIP in United States bankruptcy law is a person or corporation who has filed a bankruptcy petition, but remains in possession of property upon which a creditor has a lien or similar security interest. A debtor becomes the ...
. A company spokesperson said, "We felt this was a logical next step for our organization, considering the change in control triggered the acceleration of the repayment options ... we're looking to reorganize and to come out on the other side stronger.""''Mortal Kombat'' maker Midway Games files for bankruptcy"
''Chicago Tribune'', February 13, 2009, accessed February 3, 2011


2009 sales of assets

Midway announced on May 21, 2009, that it had received a takeover bid from Warner Bros. Interactive Entertainment, valued at more than $33 million, to acquire most of the company's assets, including Midway's Chicago and Seattle studios and rights to the ''
Mortal Kombat ''Mortal Kombat'' is an American media franchise centered on a series of video games originally developed by Midway Games in 1992. The development of the first game was originally based on an idea that Ed Boon and John Tobias had of making a v ...
'' and '' Wheelman'' series. The offer did not include the San Diego and Newcastle studios or the ''TNA'' video game series. Midway had previously worked with Warner Bros. on several games including ''
Mortal Kombat vs. DC Universe ''Mortal Kombat vs. DC Universe'' is a 2008 fighting video game, developed and published by Midway Games. The last entry in the franchise before the company went bankrupt in 2009 and sold the franchise to Warner Bros. Interactive Entertainment ...
''. Midway announced on May 28, 2009, that it would "accept binding offers up to June 24, 2009, to acquire some or all of the Company's assets." An auction was to be held on June 29, followed by a court hearing to approve the sale to the winning bidder or bidders. However, no other bids were placed for Midway's assets, and so the auction was canceled. On July 1, 2009, the bankruptcy court approved the sale of most of the company's assets to Warner Bros. subject to the intellectual property claims of a third party, Threshold Entertainment, which produced two ''
Mortal Kombat ''Mortal Kombat'' is an American media franchise centered on a series of video games originally developed by Midway Games in 1992. The development of the first game was originally based on an idea that Ed Boon and John Tobias had of making a v ...
'' films and some other ''Mortal Kombat'' entertainment properties.Gross, Kevin
''In re: Midway Games Inc., et al., Debtors'', Bankruptcy No. 09-10465; ''Threshold Entertainment, Inc. v. Midway Games Inc., et al.''
Adv. Case No. 09-51081, U.S. Bankruptcy Court, D. Delaware, March 29, 2011; an
"Finish Him! Bankruptcy Court Dismissed Suit Over ''Mortal Kombat'' Intellectual Property Rights for Lack of Subject-Matter Jurisdiction"
Morris James, LLP, September 2, 2011
On July 8, 2009, Midway disclosed that it intended to close the San Diego studio by September. However, on August 19, 2009, THQ purchased the San Diego studio for $740,000 and extinguished Midway obligations to it.GDN: THQ To Obtain Midway's San Diego Studio
gamersdailynews.com
On July 10, 2009, pursuant to the terms of the Settlement Agreement that was approved by the bankruptcy court, Midway agreed to pay to affiliates of its majority owner, Mark Thomas, approximately $4.7 million in full satisfaction of all Midway debt to Thomas and his affiliates, and Thomas and his affiliates granted to Midway's Creditors' Committee an irrevocable proxy to vote his controlled shares of common stock in Midway and forever relinquished the right to vote or dispose of the shares.Mark Thomas Form 4
filed with the SEC on July 13, 2009
The settlement reduced Thomas's claims by 93 percent, and Midway continued to operate as a Debtor in Possession. Also on July 10, 2009, the sale of assets to Warner Bros. was completed. The total gross purchase price for the sale was approximately $49 million, including receivables, and Warner Bros. assumed liabilities. The sale also triggered payments under Midway's Key Employee Incentive Plan of approximately $2.4 million to company executives. The Midway Chicago studio, responsible for the ''Mortal Kombat'' series and other games, became part of Warner Bros. Interactive Entertainment and was later rebranded NetherRealm Studios.Murphy, Joseph
"New Mortal Kombat coming 2011 says Warner Brothers"
TheGamingLiberty.com, June 10, 2010
On July 14, 2009, Midway announced that it had closed the Newcastle studio and terminated 75 employees.French, Michael
"Lights out for Midway Newcastle"
''Develop'' online, July 14, 2009
On August 19, 2009, Midway sold its French and German subsidiaries to holding companies called Spiess Media Holding UG and F+F Publishing GmbH, respectively. Spiess also purchased Midway's London publishing subsidiary on the same day. The European sales resulted in cash proceeds of $1.7 million and the elimination of related intercompany claims. In September 2009, Midway shut down its Chicago headquarters and terminated all but a few of its remaining employees. Many of the former Midway employees at the Chicago studio acquired by Warner Bros. were retained by Warner Bros.Guy, Sandra
"Judge: Shareholders fail to show Midway Games execs hid financial condition"
''Chicago Sun-Times'', October 27, 2009

''GameSpot''
On October 2, 2009, Midway and two of its subsidiaries, Midway Home Entertainment and Midway Studios Los-Angeles, sold intellectual property assets, including Midway's
TNA TNA may refer to: Organisations * Tamil National Alliance, a political coalition in Sri Lanka * The National Alliance, a political party in Kenya * The National Archives (United Kingdom), a UK public body * Tonga Nurses' Association, a trade union ...
video game licenses, to
SouthPeak Games SouthPeak Interactive Corporation, doing business as SouthPeak Games, was an American video game publisher based in Midlothian, Virginia. Founded on March 1, 1996, as a subsidiary of SAS Institute in Cary, North Carolina, it was sold and moved t ...
for $100,000 and the assumption of related liabilities;Midway Games Form 8-K
filed with the U.S. Securities and Exchange Commission as of October 2, 2009
Midway was no longer selling games and had been disposed of all fixed assets at that time.


Lawsuits and liquidation

In October 2009, the
U.S. District Court The United States district courts are the trial courts of the U.S. federal judiciary. There is one district court for each federal judicial district, which each cover one U.S. state or, in some cases, a portion of a state. Each district cou ...
in Chicago dismissed a lawsuit against former officers of Midway alleging that they had misled shareholders while selling their own stock. The judge ruled that Midway's shareholders had not shown that the executives "said or did anything more than publicly adopt a hopeful posture that its strategic plans would pay off".Hassen, Michael J
"Zerger v. Midway Games: Illinois Federal Court Dismisses Securities Fraud Class Action"
Jeffer Mangels Butler & Marmaro LLP website, November 12, 2009
On January 29, 2010, the bankruptcy court dismissed claims brought by Midway creditors for fraud and breach of duty against Sumner Redstone, Shari Redstone and Midway's other directors, concerning his 2008 loans to the company and his subsequent sale of his 87% stake in the company to Mark Thomas, which increased Midway's net debt and wiped out the company's net operating losses and other tax assets. Judge Kevin Gross wrote that his decision was "not an endorsement of any of the defendants' actions. ... The defendants oversaw the ruin of a once highly successful company, only to hide behind the protective skirt of Delaware law, which the court is bound to apply." The court permitted other creditor claims to continue. In February 2010, Midway filed its proposed plan of liquidation with the bankruptcy court. Under the plan, intercompany claims would be extinguished and a partial recovery would be allowed to the unsecured creditors of Midway Games (who held $155 million of claims) to the extent of about 16.5%, and to the unsecured creditors of Midway's subsidiaries (who held $36.7 million of claims) of about 25%. Any settlement amount under the lawsuit against National Amusements was to be paid to the two groups of unsecured creditors in the same ratio. Holders of secured and priority claims were to be paid in full, National Amusements would not receive any payment under its Subordinated Loan Agreement, and the equity holders would not receive any payment.
On May 21, 2010, the bankruptcy court approved the plan of liquidation. Unsecured creditors of Midway shared approximately $25.5 million, and unsecured creditors of the company's subsidiaries shared about $9.2 million. A liquidating trust, administered by Buchwald Capital Advisors LLC as the Trustee, was created to pursue any remaining rights of Midway's bankruptcy estate and distribute any proceeds to Midway's remaining creditors."Midway Games – CDDJ Bankruptcy Adversary Proceedings Report of Complaints, Dismissals, Defaults, Judgments"
Burbage & Weddell LLC, September 24, 2012
On June 9, 2010, the company filed a Form 15 with the Securities and Exchange Commission, terminating the public registration of its securities. The creditors' settlement of their lawsuit against National Amusements, in the total amount of $1 million, was approved by the bankruptcy court on June 21, 2010, ending the outstanding claims against the Redstone family.Rochelle, Bill

Bloomberg, June 25, 2010. Retrieved June 28, 2010.
Since December 2010, the trustee for the liquidating trust of the company, Buchwald Capital Advisors LLC, has filed 57 avoidance actions seeking to recover a total of $2,936,736 in transfers made by Midway to creditors prior to its bankruptcy filing.Reese, Randall

''Corporate Restructuring & Bankruptcy Blog'', January 4, 2011
Jones, Roland
"Midway Games Inc. Cases"
JonesandAssociates.com, April 27, 2011
In March 2011, the court dismissed the adversary proceeding by Threshold Entertainment. All of Midway's remaining unsold assets, as well as the remains of the company itself, were completely dissolved shortly thereafter.


Subsidiaries and studios


Publishing and distribution


North America

* Midway Amusement Games, LLC, in Chicago, Illinois. The original arcade division of the company, founded as Midway Manufacturing Company. Its parts and service assets were acquired by
Happ Controls SuzoHapp North America (formerly Happ Controls, Inc.) is the largest manufacturer and distributor of input device components and related accessories for arcade games, vending machines, casino games, and industrial control systems in the U.S. Headq ...
on October 1, 2001, and the company exited the arcade games business, after which the subsidiary continued to maintain its intellectual properties, specifically the libraries of Midway, Bally and Williams. Former employees including Eugene Jarvis would later form Raw Thrills that same year. * Midway Home Entertainment in San Diego, California. Founded in 1985 as Tradewest, in Corsicana, Texas, it acquired San Diego-based
Cinematronics Cinematronics Incorporated was an arcade game developer that primarily released vector graphics games in the late 1970s and early 1980s. While other companies released games based on raster displays, early in their history, Cinematronics and A ...
in 1987, which became the subsidiary the
Leland Corporation The Leland Corporation was a manufacturer of several arcade video games in the 1980s and early 1990s. The company was formed when Tradewest purchased the ailing Cinematronics in 1987. Notable among these were Quarterback (1987) and John Elway's ...
. Tradewest was acquired by WMS Industries in 1994 to enter the
home console A home video game console is a video game console that is designed to be connected to a display device, such as a television, and an external power source as to play video games. Home consoles are generally less powerful and customizable than ...
market; previously home adaptations of Midway games were published under license by Acclaim Entertainment or others. It was renamed Williams Entertainment, Inc., which in turn became Midway Home Entertainment in 1996. The Texas and San Diego officers were consolidated in 2001. Midway Home Entertainment published and marketed all Midway video games made for home consoles.


Europe

* Midway Games Ltd. based in London, United Kingdom, published and distributed Midway's video games in the UK and other markets in Europe. On August 19, 2009, Midway Games Ltd. was sold to a company owned by Martin Spiess (who was previously an executive officer of Midway) and, together with Midway Games SAS, it was formed into a holding company called Spiess Media Holding UG. It was combined with the Paris office and re-branded Tradewest Games."Midway Ltd and SAS now Tradewest Games"
next-gen.biz
* Midway Games SAS in Paris, France, published and distributed Midway video games in France. On August 19, 2009, Midway Games SAS was sold off to Spiess, along with Midway Games Ltd., and they were formed into Spiess Media Holding UG. It was combined with the London office and re-branded Tradewest Games. * Midway Germany GmbH in Munich, Germany, published and distributed Midway video games in Germany. The subsidiary was formed in February 2005 by Midway Games Ltd. In August 2009, Midway Germany GmbH was sold to former manager Uwe Fürstenberg's company F+F Publishing GmbH.


Studios


Sold

* Midway Studios Chicago in Chicago, Illinois, was the original Midway arcade development studio, and was housed within the same facility as Midway Amusement Games, across the street from Midway's head office. After the company exited the arcade business in 2001, the studio focused solely on titles for home and portable consoles. It had developed '' Blitz: The League'' for the
PlayStation 2 The PlayStation 2 (PS2) is a home video game console developed and marketed by Sony Computer Entertainment. It was first released in Japan on 4 March 2000, in North America on 26 October 2000, in Europe on 24 November 2000, and in Australia on 3 ...
and Xbox and '' Stranglehold'' for the PlayStation 3, Xbox 360 and PC, and continued overseeing the ''Mortal Kombat'' series. Following its acquisition by Warner Bros, the studio was renamed WB Games Chicago. In June 2010, Warner Bros. rebranded it as NetherRealm Studios. * Midway Studios San Diego Located in the same building as Midway Home Entertainment, it was the first studio to develop video games for home consoles. Midway Studios San Diego developed '' Gauntlet: Seven Sorrows'' and was given the task of completing the game '' Rise and Fall: Civilizations at War'', which had been started by
Stainless Steel Studios Stainless Steel Studios (SSSI) was a video game developer, started in 1997 by Rick Goodman and Dara-Lynn Pelechatz. The company was based in Cambridge, Massachusetts, and focused on the development of real-time strategy games. History Stainless S ...
. The studio has worked on games such as the ''
Ready 2 Rumble Boxing ''Ready 2 Rumble Boxing'' is a boxing video game developed by Midway Studios San Diego, published by Midway Games in 1999 for the Dreamcast, PlayStation, Game Boy Color, and Nintendo 64. The success of the Dreamcast version led to it becoming one ...
, Ready 2 Rumble Boxing: Round 2'', The ''
Cruis'n ''Cruis'n'' is a series of racing video games originally developed by Eugene Jarvis for Midway Games and published by Midway and Nintendo. The series distinguishes itself from other racing games with its over-the-top presentation and fast-pace ...
'' series, '' TNA Impact!'', and '' Blitz: The League II''. Midway announced on July 8, 2009, that it intended to close the San Diego studio by the beginning of September.Wong, Wailin
"Midway Games to close San Diego studio"
chicagotribune.com, July 8, 2009
However, in early August 2009, THQ bought the studio and its assets, renamed the studio as
THQ San Diego Midway Studios San Diego (known as THQ San Diego from 2009 to 2012) was a game developer based in San Diego, California. It was the successor to the Leland Corporation and Cinematronics. History In 1994, Midway Games parent WMS Industries bought ...
, and about 40% of its employees were offered positions. THQ in turn declared bankruptcy at the end of 2012. * Midway Games West, founded as Atari Games in 1984 and acquired by Midway in 1996, it primarily produced arcade games. Although it eventually ceased operations, Midway Games West continued to exist as a holding entity for its copyrights and trademarks. Its assets are now owned by Warner Bros. Interactive Entertainment. *
Surreal Software Surreal Software was an American video game developer based in Kirkland, Washington, and a subsidiary of Warner Bros. Interactive Entertainment, known for '' The Lord of the Rings: The Fellowship of the Ring'', '' The Suffering'' and '' Drakan' ...
in Seattle, Washington, founded in 1995, was acquired by Midway in 2004 and sold to Warner Bros. in July 2009.


Defunct

*
Midway Studios Austin Midway Studios Austin (formerly known as Inevitable Entertainment) was a video game developer established by former Acclaim Studios Austin employees, founded as Inevitable Entertainment in 2000 and acquired by Midway Games in 2004. Responsible f ...
, founded as Inevitable Entertainment, Inc. on March 23, 2000, was acquired in 2004 and closed in December 2008. * Midway Studios Australia in
Adelaide, South Australia Adelaide ( ) is the list of Australian capital cities, capital city of South Australia, the state's largest city and the list of cities in Australia by population, fifth-most populous city in Australia. "Adelaide" may refer to either Greater A ...
, was founded as Ratbag Games in 1993. It was acquired by Midway on August 4, 2005, and was closed four months later in December 2005. *
Midway Studios Los Angeles Midway Studios Los Angeles Inc. (formerly known as Paradox Development) was an American-based video game developer. They are best known for fighting games such as the '' X-Men Mutant Academy'' and ''Backyard Wrestling'' franchises, as well as ...
in Moorpark, California, founded in 1994 as Paradox Development, was acquired by Midway in 2004. It was closed in 2008 and merged with the San Diego studio. *
Midway Studios Newcastle Midway Studios Newcastle Limited (originally Pitbull Syndicate) was a British video game developer based in Gateshead, England. History Pitbull Syndicate was formed in December 1996 by an ensemble of programmers and artists with extensive exp ...
in Newcastle upon Tyne, England, was founded in December 1996 as Pitbull Syndicate and acquired by Midway in October 2005. It was closed on July 14, 2009, following Midway's sale of assets to Warner Bros., because Midway failed to find a buyer for the studio. In 2009, some former employees of the studio formed a new company called Atomhawk Design.Gilbert, Ben
"From the ashes of Midway Newcastle, Atomhawk Design rises"
Joystiq, September 3, 2009
In 2010, game designer Robert Troughton, a founder of Pitbull Syndicate, formed another new company, Pitbull Studio, in Newcastle.Makuch, Eddie

GameSpot.com, July 14, 2010


List of games developed or licensed


Video games


Pinball

All games were released under the Bally brand, except as noted.


References


External links


Official website
(from the Internet Archive Wayback Machine)
Midway Liquidating Trust web page

Midway to Open Casual Games Portal

Midway Games profile
from
MobyGames MobyGames is a commercial website that catalogs information on video games and the people and companies behind them via crowdsourcing. This includes nearly 300,000 games for hundreds of platforms. The site is supported by banner ads and a small ...

August 2009 Gamasutra article
*
Insert Coin
', documentary directed by Joshua Tsui {{Authority control American companies established in 1958 American companies disestablished in 2010 Defunct brands Defunct companies based in Chicago Companies that filed for Chapter 11 bankruptcy in 2009 Defunct companies based in Illinois Pinball manufacturers Electronics companies established in 1958 Video game companies established in 1988 Electronics companies disestablished in 2010 Video game companies disestablished in 2010 Video game publishers Franklin Park, Illinois Defunct video game companies of the United States 1958 establishments in Illinois 2010 disestablishments in Illinois