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'', ''
Rampage'', ''
Spy Hunter
Espionage, spying, or intelligence gathering is the act of obtaining secret or confidential information (intelligence) from non-disclosed sources or divulging of the same without the permission of the holder of the information for a tangib ...
'', ''
NBA Jam
''NBA Jam'' (sometimes "Jam" for short) is a long-running List of basketball video games, basketball video game series based on the National Basketball Association (NBA). Initially developed as arcade games by Midway Games, Midway, the game foun ...
'', ''
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
''NFL Blitz'' is a series of American football themed video games originally released by Midway featuring National Football League (NFL) teams. It began as a 1997 arcade game '' NFL Blitz'' that was ported to home consoles and spawned a series of ...
''. Midway also acquired the rights to video games that were originally developed by
Williams Electronics
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. Williams ...
and
Atari Games, such as ''
Defender'', ''
Joust
Jousting is a martial game or hastilude between two horse riders wielding lances with blunted tips, often as part of a tournament. The primary aim was to replicate a clash of heavy cavalry, with each participant trying to strike the opponen ...
'', ''
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'', and the ''
Rush'' series.
The company was founded as Midway Manufacturing in 1958, as an amusement game manufacturer. The company was then purchased by
Bally Manufacturing
Bally Manufacturing, later renamed Bally Entertainment, was an American company that began as a pinball and slot machine manufacturer, and later expanded into casinos, video games, health clubs, and theme parks. It was acquired by Hilton Hotel ...
in 1969, and used the Bally Midway name in the 1980s. In 1973, Midway moved into the
interactive entertainment
Interactive media normally refers to products and services on digital computer-based systems which respond to the user's actions by presenting content such as text, moving image, animation, video and audio. Since its early conception, various ...
industry,
developing and
publishing arcade video games
Arcade most often refers to:
* Arcade game, a coin-operated game machine
** Arcade cabinet, housing which holds an arcade game's hardware
** Arcade system board, a standardized printed circuit board
* Amusement arcade, a place with arcade games ...
. The company scored its first mainstream hit with the U.S. distribution of ''
Space Invaders
is a 1978 shoot 'em up arcade game developed by Tomohiro Nishikado. It was manufactured and sold by Taito in Japan, and licensed to the Midway division of Bally for overseas distribution. ''Space Invaders'' was the first fixed shooter an ...
'' in 1978. Bally then merged its
pinball
Pinball games are a family of games in which a ball is propelled into a specially designed table where it bounces off various obstacles, scoring points either en route or when it comes to rest. Historically the board was studded with nails call ...
division into Midway in 1982. In 1988, Midway was purchased and re-incorporated by
WMS Industries Inc. In the 90’s, WMS purchased
Tradewest
Tradewest was an American video game company based in Corsicana, Texas that produced numerous games in the 1980s and early 1990s. The company was the publisher of the '' Battletoads'' and '' Double Dragon'' series in North America and the PAL regi ...
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
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
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
''Game Developer'', known as ''Gamasutra'' until 2021, is a website founded in 1997 that focuses on aspects of video game development. It is owned and operated by Informa and acts as the online sister publication to the print magazine '' Gam ...
'', 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
Sumner Murray Redstone ( Rothstein; May 27, 1923 – August 11, 2020) was an American billionaire businessman and media magnate. He was the founder and chairman of the second incarnation of Viacom which was dissolved in 2019 (a year before Redst ...
, the head of
Viacom Viacom, an abbreviation of Video and Audio Communications, may refer to:
* Viacom (1952–2006), a former American media conglomerate
* Viacom (2005–2019), a former company spun off from the original Viacom
* Viacom18, a joint venture between Par ...
and
CBS Corporation
The second incarnation of CBS Corporation (the first being a short-lived rename of the Westinghouse Electric Corporation) was an American multinational media conglomerate with interests primarily in commercial broadcasting, publishing, and ...
, 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"](_blank)
Reuters, December 1, 2008
In February 2009, Midway Games filed in Delaware for bankruptcy.
Warner Bros.
Warner Bros. Entertainment Inc. (commonly known as Warner Bros. or abbreviated as WB) is an American film and entertainment studio headquartered at the Warner Bros. Studios complex in Burbank, California, and a subsidiary of Warner Bros. D ...
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](_blank)
filed with the Securities and Exchange Commission on July 16, 2009[Bathon, Michael]
''Business Week'', February 3, 2010 The
U.S. District Court 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 in 1969.
Bally, at that time, was a leader in the manufacture of slot machines.
["Williams-Bally-Midway the 'Roman Empire' of Gaming"](_blank)
Gamester81 Enterprises, January 6, 2012 After some years making mechanical
arcade games such as puck bowling and simulated western shoot-out, Midway became an early American maker of arcade
video game
Video games, also known as computer games, are electronic games that involves interaction with a user interface or input device such as a joystick, controller, keyboard, or motion sensing device to generate visual feedback. This fee ...
s. Throughout the 1970s, Midway had a close alliance with Japanese video game publisher
Taito
is a Japanese company that specializes in video games, toys, arcade cabinets and game centers, based in Shinjuku, Tokyo. The company was founded by Michael Kogan in 1953 as the importing vodka, vending machines and jukeboxes into Japan. I ...
, 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
is a 1978 shoot 'em up arcade game developed by Tomohiro Nishikado. It was manufactured and sold by Taito in Japan, and licensed to the Midway division of Bally for overseas distribution. ''Space Invaders'' was the first fixed shooter an ...
'' in America.
This was followed by Midway's licensing and distributing the U.S. version of
Namco
was a Japanese multinational video game and entertainment company, headquartered in Ōta, Tokyo. It held several international branches, including Namco America in Santa Clara, California, Namco Europe in London, Namco Taiwan in Kaohsiung, ...
's ''
Pac-Man'' 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
Pinball games are a family of games in which a ball is propelled into a specially designed table where it bounces off various obstacles, scoring points either en route or when it comes to rest. Historically the board was studded with nails call ...
division with Midway. Three games released that year, including ''
Satan's Hollow'', 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
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. Willia ...
Inc. and its name was changed back to Midway Manufacturing. Midway moved its headquarters from
Franklin Park, Illinois
Franklin Park is a village in Cook County, Illinois, United States. The population was 18,467 at the 2020 census, up from 18,333 at the 2010 census. It was named for real estate broker Lesser Franklin who bought acres of the area when it was a maj ...
to Williams' then-headquarters in
Chicago
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
, and WMS reincorporated Midway as a
Delaware corporation
The Delaware General Corporation Law (Title 8, Chapter 1 of the Delaware Code) is the statute of the Delaware Code that governs corporate law in the U.S. state of Delaware. Adopted in 1899, the statute has since seen Delaware become the most im ...
.
Although WMS retained many
R&D employees from the original Midway, only two game designers were retained: ''
Rampage'' 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
''The Addams Family'' is a fictional family created by American cartoonist Charles Addams. They originally appeared in a series of 150 unrelated single-panel cartoons, about half of which were originally published in ''The New Yorker'' over ...
'' 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, originally a part of
Atari, Inc.
Atari, Inc. was an American video game developer and home computer company founded in 1972 by Nolan Bushnell and Ted Dabney. Atari was a key player in the formation of the video arcade and video game industry.
Based primarily around the Sunny ...
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
Tradewest was an American video game company based in Corsicana, Texas that produced numerous games in the 1980s and early 1990s. The company was the publisher of the '' Battletoads'' and '' Double Dragon'' series in North America and the PAL regi ...
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 boards included the following: ]Astrocade
The ''Bally'' ''Astrocade'' (also known as ''Bally Arcade'' or initially as ''Bally ABA-1000'') is a second-generation home video game console and simple computer system designed by a team at Midway, at that time the videogame division of Bally ...
; MCR, MCR II, MCR III and MCR-68; T Unit (1993) and X Unit
: ''For the software testing tools, see xUnit.''
The x unit (symbol xu) is a unit of length approximately equal to 0.1 pm (10−13 m). It is used to quote the wavelength of X-rays and gamma rays.
Originally defined by the Swedish ...
(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'' and ''
Joust
Jousting is a martial game or hastilude between two horse riders wielding lances with blunted tips, often as part of a tournament. The primary aim was to replicate a clash of heavy cavalry, with each participant trying to strike the opponen ...
'', 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](_blank)
filed with the SEC and dated on November 27, 2001 Midway kept Atari Games as a wholly owned
subsidiary as part of this
spin-off. 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
Atari Interactive is a name used by several separate groups and corporations since the mid-1990s. In 1996, it was the name of Atari Corporation's PC publishing division, bringing games like the Atari Jaguar's ''Tempest 2000'' to the PC platfor ...
. 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
Sumner Murray Redstone ( Rothstein; May 27, 1923 – August 11, 2020) was an American billionaire businessman and media magnate. He was the founder and chairman of the second incarnation of Viacom which was dissolved in 2019 (a year before Redst ...
, 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 teams
[Midway'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 of Seattle, Washington. In October 2004, it acquired Inevitable Entertainment of Austin, Texas (which became
Midway Austin). 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
Adelaide ( ) is the capital city of South Australia, the state's largest city and the fifth-most populous city in Australia. "Adelaide" may refer to either Greater Adelaide (including the Adelaide Hills) or the Adelaide city centre. The dem ...
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 to publish games, based on properties, namely that of
Cartoon Network and
Adult Swim
Adult Swim (AS; stylized as dult swim'' and often abbreviated as s'') is an American adult-oriented night-time cable television channel that shares channel space with the basic cable network Cartoon Network and is programmed by its in-house ...
, 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](_blank)
from ''Gamasutra
''Game Developer'', known as ''Gamasutra'' until 2021, is a website founded in 1997 that focuses on aspects of video game development. It is owned and operated by Informa and acts as the online sister publication to the print magazine '' Gam ...
'', 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'' 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
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 co ...
for the
Central District of California
The United States District Court for the Central District of California (in case citations, C.D. Cal.; commonly referred to as the CDCA or CACD) is a Federal trial court that serves over 19 million people in Southern and Central California, m ...
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, a company controlled by Sumner Redstone.
Midway's CEO, David Zucker, stated that the introduction of ''
Unreal Tournament 3'', 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](_blank)
''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!
''Impact!'' (stylized as ''IMPACT!''), also known as ''IMPACT! on AXS TV'',
is an American professional wrestling television program produced by the American promotion Impact Wrestling (formerly known as Total Nonstop Action Wrestling (TNA)) tha ...
'' and ''
Blitz: The League II'' around September/October 2008, under the
Midway Studios Los Angeles 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](_blank)
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](_blank)
''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"](_blank)
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 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"](_blank)
''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
Warner Bros. Interactive Entertainment (WBIE; also known as Warner Bros. Games or WB Games) is an American video game publisher based in Burbank, California, and part of the newly-formed Global Streaming and Interactive Entertainment unit of ...
, valued at more than $33 million, to acquire most of the company's assets, including Midway's
Chicago
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
and
Seattle
Seattle ( ) is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2020 population of 737,015, it is the largest city in both the state of Washington and the Pacific Northwest regio ...
studios and rights to the ''
Mortal Kombat'' and ''
Wheelman'' series. The offer did not include the
San Diego
San Diego ( , ; ) is a city on the Pacific Ocean coast of Southern California located immediately adjacent to the Mexico–United States border. With a 2020 population of 1,386,932, it is the eighth most populous city in the United State ...
and
Newcastle Newcastle usually refers to:
*Newcastle upon Tyne, a city and metropolitan borough in Tyne and Wear, England
*Newcastle-under-Lyme, a town in Staffordshire, England
*Newcastle, New South Wales, a metropolitan area in Australia, named after 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
Threshold Entertainment Group, also known as Threshold Entertainment, is an intellectual property company. Its animation subsidiary, Threshold Animation Studios, produces films. Larry Kasanoff is the company's chief executive officer (CEO) after p ...
, which produced two ''
Mortal Kombat'' 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
THQ Inc. was an American video game company based in Agoura Hills, California. It was founded in April 1990 by Jack Friedman, originally in Calabasas, and became a public company the following year through a reverse merger takeover. Initi ...
purchased the San Diego studio for $740,000 and extinguished Midway obligations to it.
[GDN: THQ To Obtain Midway's San Diego Studio](_blank)
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](_blank)
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
NetherRealm Studios (stylized as NetheЯRealm Studios) is an American video game developer based in Chicago and owned by Warner Bros. Interactive Entertainment. Led by video game industry veteran and ''Mortal Kombat'' co-creator Ed Boon, the s ...
.
[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 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 move ...
for $100,000 and the assumption of related liabilities;
[Midway Games Form 8-K](_blank)
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 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"](_blank)
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
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
. The original arcade division of the company, founded as Midway Manufacturing Company. Its parts and service assets were acquired by
Happ Controls 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
Eugene Peyton Jarvis is an American game designer and video game programmer, known for producing pinball machines for Atari and video games for Williams Electronics. Most notable among his works are the seminal arcade video games '' Defender'' ...
would later form
Raw Thrills
Raw Thrills, Inc. is an arcade game entertainment company based in Skokie, Illinois. It is best known for developing arcade games based on films.
History
Raw Thrills was founded in 2001 by Eugene Jarvis, Deepak Deo, and Andrew Eloff. The staff ...
that same year.
* Midway Home Entertainment in
San Diego, California
San Diego ( , ; ) is a city on the Pacific Ocean coast of Southern California located immediately adjacent to the Mexico–United States border. With a 2020 population of 1,386,932, it is the eighth most populous city in the United Stat ...
. Founded in 1985 as
Tradewest
Tradewest was an American video game company based in Corsicana, Texas that produced numerous games in the 1980s and early 1990s. The company was the publisher of the '' Battletoads'' and '' Double Dragon'' series in North America and the PAL regi ...
, in
Corsicana, Texas
Corsicana is a city in Navarro County, Texas, United States. It is located on Interstate 45, 56 miles northeast of Waco, Texas. The population was 23,770 at the 2010 census. It is the county seat of Navarro County, and an important Agri-busines ...
, it acquired San Diego-based
Cinematronics 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
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. Willia ...
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
Acclaim Entertainment, Inc. was an American video game publisher based in Glen Cove, New York. Originally formed by Greg Fischbach, Robert Holmes and Jim Scoroposki out of an Oyster Bay storefront in 1987, the company established a worldwide ...
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
Tradewest was an American video game company based in Corsicana, Texas that produced numerous games in the 1980s and early 1990s. The company was the publisher of the ''Battletoads'' and ''Double Dragon'' series in North America and the PAL region. ...
.
["Midway Ltd and SAS now Tradewest Games"](_blank)
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
Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of the States of Germany, German state of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the List of cities in Germany by popu ...
, 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
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
, 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 and
Xbox
Xbox is a video gaming brand created and owned by Microsoft. The brand consists of five video game consoles, as well as applications (games), streaming services, an online service by the name of Xbox network, and the development arm by the ...
and ''
Stranglehold'' for the
PlayStation 3
The PlayStation 3 (PS3) is a home video game console developed by Sony Computer Entertainment. The successor to the PlayStation 2, it is part of the PlayStation brand of consoles. It was first released on November 11, 2006, in Japan, November ...
,
Xbox 360
The Xbox 360 is a home video game console developed by Microsoft. As the successor to the original Xbox, it is the second console in the Xbox series. It competed with Sony's PlayStation 3 and Nintendo's Wii as part of the seventh generati ...
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
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 ...
Located in the same building as Midway Home Entertainment, it was the first studio to develop video games for
home consoles
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 ...
. 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. 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!
''Impact!'' (stylized as ''IMPACT!''), also known as ''IMPACT! on AXS TV'',
is an American professional wrestling television program produced by the American promotion Impact Wrestling (formerly known as Total Nonstop Action Wrestling (TNA)) tha ...
'', 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
THQ Inc. was an American video game company based in Agoura Hills, California. It was founded in April 1990 by Jack Friedman, originally in Calabasas, and became a public company the following year through a reverse merger takeover. Initi ...
bought the studio and its assets, renamed the studio as
THQ San Diego, 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 in
Seattle, Washington
Seattle ( ) is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2020 population of 737,015, it is the largest city in both the state of Washington and the Pacific Northwest region ...
, founded in 1995, was acquired by Midway in 2004 and sold to Warner Bros. in July 2009.
Defunct
*
Midway Studios Austin, 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, 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 in
Moorpark, California
Moorpark is a city in Ventura County in Southern California. Moorpark was founded in 1900. The town grew from just over 4,000 citizens in 1980 to over 25,000 by 1990. As of 2006, Moorpark was one of the fastest-growing cities in Ventura County. ...
, 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 in
Newcastle upon Tyne
Newcastle upon Tyne ( RP: , ), or simply Newcastle, is a city and metropolitan borough in Tyne and Wear, England. The city is located on the River Tyne's northern bank and forms the largest part of the Tyneside built-up area. Newcastle is ...
, 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
The Internet Archive is an American digital library with the stated mission of "universal access to all knowledge". It provides free public access to collections of digitized materials, including websites, software applications/games, music, ...
Wayback Machine
The Wayback Machine is a digital archive of the World Wide Web founded by the Internet Archive, a nonprofit based in San Francisco, California. Created in 1996 and launched to the public in 2001, it allows the user to go "back in time" and see ...
)
Midway Liquidating Trust web pageMidway to Open Casual Games PortalMidway Games profilefrom
MobyGames
August 2009 Gamasutra article*
Insert Coin', documentary directed by Joshua Tsui
{{Authority control
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