NEWS - Wednesday, November 2, 2005


Midway Has Tough Financial Quarter

Midway drops projections as key titles miss targets Tough quarter for ambitious US publisher, but Zucker remains optimistic for ’06 Publisher Midway has been forced to drop its financial targets for the third quarter and the full year significantly after titles including The Suffering: Ties That Bind and LA Rush failed to meet sales expectations. The company has dropped its full-year revenue projection to $145 million, down from the previous estimate of $200 million, and expects to make a loss of $95 million - a major increase over its previously estimated loss of $60 million. Looking at the quarter which ended on September 31st, the firm has yet to announce final results but is expecting to hit its revenue guidance of $30 million - albeit taking a loss of $29 million, up from the $19 million loss it predicted in August. Investment analysts at Wedbush Morgan Securities dropped their rating of Midway to "Sell" on the news, although analyst Michael Pachter commented that "we remain admirers of the company’s portfolio of owned properties, its management, and its development prowess." The lackluster commercial reception for The Suffering: Ties That Bind and LA Rush is fingered as a key reason for the shortfall, with the former being a particular blow since Midway had hoped to build last year’s surprise hit The Suffering into a successful ongoing franchise. However, the company has also taken this opportunity to accelerate the rate at which it’s writing down development costs for third and fourth quarter releases, so a tough couple of quarters should help to spruce up the company’s financials going forward. "While we are disappointed with sales of some of our products this year, we continue to be excited about the progress we are making on, and the prospects for, our 2006 and 2007 products," commented president and CEO David Zucker. "We believe that our recent financing has provided the flexibility and financial resources to meet our goal of developing high-quality games with better game concepts as we move through the upcoming console transition." Midway has recently been linked with a possible takeover bid for British publisher SCi, which also owns Eidos - an acquisition which would give the heavily North American focused firm a large base of operations in Europe and a range of powerful franchises.
Source: http://www.gameindustry.biz

Site Statistics

Registered Members: 80,669
Forum Posts: 725,966
Xbox One Titles: 6,504
Xbox 360 Titles: 1,086
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 586
Original Xbox Titles: 987
Staff Reviews: 2,593
Member Reviews: 10,339
News Articles: 16,552
Screenshots: 39,360
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News




Monster Energy Supercross 25 Teased in New Trailer

Monster Energy Supercross 25 Teased in New TrailerFor the first time, players will get to live the thrills of the current season and even anticipate the official schedule by racing with the 2025 official roster, tracks, and bikes alongside the course of the real 2025 championship season.





See News Archives

Community Forum Activity

KeyWe Giveaway!
Post by Variation-XBA
0 Replies, 24663 Views

2021: XBA is still here
Post by shrew king
39 Replies, 201505 Views

Watch Dogs: Legion
Post by Nato King
0 Replies, 123208 Views

Xbox Series X or S
Post by Nato King
5 Replies, 140553 Views

Spellbreak Grand Magus Pack (3) and Starter Pack (7) Giveaway!
Post by Variation-XBA
0 Replies, 130396 Views

I pay $ 1000! I search the Element 54 Canadian launch Team signaturen Faceplate
Post by Smill
0 Replies, 152152 Views

Xbox one no signal
Post by debrartin
0 Replies, 142029 Views

do you remember?
Post by SnoochyBoochy
3 Replies, 211398 Views

i haz xbox
Post by SnoochyBoochy
0 Replies, 165649 Views

Claiming the first thread of 2020
Post by Kraft
7 Replies, 261515 Views

Important! I pay $ 1000! I search the Sweden launch and the Element 54 Faceplate
Post by Smill
3 Replies, 148152 Views

Squad Up
Post by samslophead
0 Replies, 251356 Views

TERA Skinned Xbox One X Giveaway!
Post by Variation-XBA
0 Replies, 177956 Views

Starfield Release expectations?
Post by DJ tx
4 Replies, 307292 Views

Issue with Xbox live on Xbox home
Post by rcmpayne
0 Replies, 166169 Views

© 2000-2024 XboxAddict.com - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. XboxAddict.com is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics