Midway to cancel underperforming licensed titles

Publisher expects further losses in Q3 after reaching mutual agreements with partners

By Matt Martin.Published Thursday 16th October 2008, 2:37pm GMT

Midway Games has announced that it is to cancel future titles related to a number of licensed properties.

Although no specific brands were named, the company said it has come to mutual agreements with a number of licensing partners.

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"The resolution of these licensing arrangements on good terms for the company is a very positive step as we continue to review Midway's involvement with underperforming projects and focus on our core properties," said Matt Booty, interim CEO and president.

"Our fall line-up and strong pipeline of games that tie in to market-leading licenses like DC Comics and TNA Wrestling underscore our strategy of aligning with consumer and entertainment properties that can drive a solid gaming experience."

As a result, Midway expects a third quarter net loss of USD 0.70 per share, compared to a previously estimated net loss of 0.49 per share.

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For the last quarter, Midway reported losses of USD 34.8 million.

The company's licensing partners include the NBA, MTV and Paramount, TNA Wrestling and DC Comics.

Read article on GamesIndustry.biz