During the current recession it seemed that (for awhile at least) the video game industry was untouchable, but in the past few months we have discovered that this is not the case! There have been layoff’s, delays, and companies flat out going out of business. Eidos, in particular has been hit hard in the past few months, and even EA has been struggling. Now Midway has announced that it is filing chapter 11 bankruptcy. Although the cause is not entirely due to the economy I am sure that the current state of things have made it hard for them.
“This was a difficult but necessary decision,” said Midway Chairman, President and CEO Matt Booty. “We have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure.”
As said before I don’t believe the economy is entirely the cause of Midway’s woes, since they have been struggling for years now. Sigh* you were once an arcade giant, oh how the mighty have fallen!
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