industry news
Midway Confirms Lay-Offs, Cancellation of Austin Project
Posted by Brian Crecente at 7:00 AM on August 12, 2008
Midway has confirmed that they have canceled an "as-yet-unannounced" project in Austin and is laying off 90 of 130 people.
Earlier today we wrote that 70 to 90 people had been let go this morning and that free-roaming crime game Criminal had been axed.
"While this was a very difficult decision, we feel it was the right thing to do for the future of Midway", said Matt Booty, interim CEO and president of Midway Games Inc.. "We view every game as an investment that must meet certain standards for quality, scheduling, and profitability. Midway remains committed to producing the highest quality entertainment, as evidenced by our strong holiday line-up which includes TNA iMPACT!, Blitz: The League II, and Mortal Kombat vs. DC Universe starring a team of MK characters and some of the most recognisable DC Comics personalities such as Batman, The Joker, and Superman."
Midway says that the decision will "allow Midway to maximize its development resources and apply manpower and capital to projects with the highest chances of success".
According to a Form 8K filed with the SEC by Midway on Friday, the company's board of directors plans to implement a plan to reduce the company's "cost structure and maximise its development resources by applying manpower and capital to projects with the highest chances of success".
To do that Midway has started a "strategic workforce reduction". Those reductions will include 90 to 130 people in Austin or about 10 percent of the company's global workforce. The majority of the cuts are expected to hit by the end of the month.
Of the 90 people being laylet go, 80 are full time and 10 are contractors, according to Midway officials. There are no plans to close the Austin Studio, we've been told.
Midway to Cancel Project in Austin Studio, Optimise Product Development Resources [Midway] and Form 8-K for MIDWAY GAMES INC

Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
Tonx
Posted 7:30 AM 12/8/08
One hundred people lost their jobs today because Midway would rather punish failure than nurture mistakes, and reward stockholders instead of develop their resources.
Okay, we get it. You don't like Midway's games. But it's their business strategy that cost jobs this morning. Hopefully whatever CEO they put in place to replace the iterim prez has the sense to see what a mistake this round of layoffs was - and how much it will cost them in the long run.
Tonx
DigitalHero
Posted 7:27 AM 12/8/08
@zanzibarlegend:
Nice analogy. LOL
DigitalHero
zanzibarlegend
Posted 7:23 AM 12/8/08
@DigitalHero: exactly.
i dunno midway is like that poor old boxer having a mid-life crisis, trying to punch his way outta mediocrity, only to find himself punching bags of meat, wishing he were the italion stallion.
sad sight.
zanzibarlegend
PaPa Bear
Posted 7:21 AM 12/8/08
It's always a sad thing to see a game get canceled..regardless of it's quality
PaPa Bear
BoringJob
Posted 7:20 AM 12/8/08
If a tree falls on Midway and nobody cares, does it matter?
Any IPs that have any chance of making money will be grabbed by EA.
It is nice that Midway is being put out of their suffering finally, though.
BoringJob
DigitalHero
Posted 7:19 AM 12/8/08
Saw this coming. Just look at their past projects. Stranglehold anyone?
DigitalHero
Tonx
Posted 7:16 AM 12/8/08
Companies cancel projects all the time without needing to shit-can all the employees that had their name attached to it. Midway wasn't disappointed with the "Criminal" game, they were disappointed with the team.
It's sad that they sacked so much talent because the dev team directors had no direction. Luckilly, I'm sure other developer teams will snatch up the newly-available talent on the market. Good luck to all those who received their pink slips this morning.
Except for the heads of the Austin team, that is. Looks like it's their fault a hundred people are losing their jobs.
Tonx
mva5580
Posted 7:14 AM 12/8/08
TNA: Impact, Blitz: The League II, and MK vs. DC is their Holiday lineup. That's considered strong?
Midway even acknowledges themselves in that press release that MK vs. DC will only sell well because of the DC license, not anything special they do to it. And the other 2 games will probably have a hard time getting a combined rating of 9, let alone individually.
If that's Midway's "strong" lineup, I'd be prepared for more lay-offs next year.
mva5580
chuffhoncho
Posted 7:06 AM 12/8/08
@ranchhand: Hmm, so long possible yet unlikely innovation?
chuffhoncho
DaPress
Posted 7:04 AM 12/8/08
They have a standard for quality games?
[www.metacritic.com]
Give me a fucking break.
DaPress
ranchhand
Posted 7:03 AM 12/8/08
@chuffhoncho: so long innovation? um. what innovation?
ranchhand
Candlejack
Posted 7:02 AM 12/8/08
Too bad for the people who worked there. But Midway is just shit these days I'm sorry. The more memorable titles they merely published in the past are Unreal Tournament 3 and...Unreal Tournament 3.
@SG79: Burn :D
Candlejack
beantastic!
Posted 7:02 AM 12/8/08
@SG79: There's another few parallels that I could draw between Air Canada and Midway, too - such as undelivered promises of quality of services rendered...
beantastic!
Adrock4
Posted 7:02 AM 12/8/08
I never did care for Midway. Hydro Thunder was the only good thing to come out of them.
Adrock4
chuffhoncho
Posted 7:02 AM 12/8/08
Midway says that the decision will "allow Midway to maximize its development resources and apply manpower and capital to projects with the highest chances of success."
In other words, so long innovation. Hello sequels!
chuffhoncho
Gfunksnow
Posted 7:02 AM 12/8/08
wow, that is really sucky, i wonder what made them ax the game?
Gfunksnow
SG79
Posted 7:00 AM 12/8/08
Midway reminds me of Air Canada. Regardless of how the economy is, they always manage to make extremely poor management decisions that ultimately lead to layoffs.
SG79
DaPress
Posted 7:55 AM 12/8/08
@Sustenance: Well put, sir. I'd rather see a piece of shit die on the vine than be plucked and offered to gamers as the next coming of Christ.
DaPress
DigitalHero
Posted 7:53 AM 12/8/08
@zanzibarlegend:
Dammit, its time to put it back then. Everyone keeps asking about it. :D
DigitalHero
benderbendingrodriguez
Posted 7:45 AM 12/8/08
@Sustenance: Agree completely. It's FAR better to cut a bad game early than crap something out and ruin any credibility as a studio hoping enough people will buy a game to recoup a little of the loss. Plus, you put 5 million more into a game that's already cost you 15M to make it fun, it's that much harder to recoup. Midway made a very hard but ultimately good decision for the future of the company IMO. This is par for the course among many large publishers right now. Everyone is tightening their belt.
benderbendingrodriguez
ps360blows
Posted 7:43 AM 12/8/08
@Gfunksnow: From what Midway employees have told me, Criminal was absolutely awful. Terrible gameplay and they couldn't get it to run well at all. They basically butchered it to an unrecognizable abomination of what it's original concept was. I heard nothing good of it other than it looked good graphically.
ps360blows
zanzibarlegend
Posted 7:39 AM 12/8/08
@DigitalHero: Thanks!
by the way, i'm already missing your old avatar.
*plays "Chrono's Theme" in Itunes in respect.*
zanzibarlegend
Sustenance
Posted 7:35 AM 12/8/08
See, this is exactly what I'm talking about. How much time and people-power was wasted on this thing before someone had the guts to pull the plug?
Most of the time, NO ONE pulls the plug, and then you, the gamer, are forced to consume the carcass.
Sustenance
William "Killer" Shatner
Posted 8:13 AM 12/8/08
Another developer saying "fuck the original IPs."
William "Killer" Shatner
Putter5
Posted 8:00 AM 12/8/08
I wonder if Harvey Smith got the axe? I remember watching that Warren Spector lecture/interview with him, and I got the impression that when they brought him on well into the process of Blacksite: Area 51 (Austin's last project), that he felt that there was only so much he could do to try and save the project. Considering it still bombed, that doesn't say much about Midway Austin...
Putter5
zanzibarlegend
Posted 8:44 AM 12/8/08
@DigitalHero: yay for democracy! it was no broken, so why fix it? :D
zanzibarlegend
weasl
Posted 8:27 AM 12/8/08
Midway has been at death's door for years now. I feel for the people that lost their jobs today, but at the same time what can you expect from a company that's STILL losing money.
weasl
Dalren
Posted 8:26 AM 12/8/08
I hope some of you lose your jobs.
Dalren
zanzibarlegend
Posted 8:46 AM 12/8/08
@Dalren: "I hope some of you lose your jobs."
were not blaming employees, but the guys in the suits callin the shots. take it easy there, nobody on here needs to lose their job, especially how horrible the economy is in the US.
zanzibarlegend
PissedPS3Fan
Posted 9:55 AM 12/8/08
You know what's really eeiry? I had a dream last night about getting shitcanned from my software development position. Luckily I don't work for Midway...
PissedPS3Fan
FunkyJ
Posted 9:53 AM 12/8/08
No doubt that this is simply another way for the majority stake shareholders to gain greater profit at the expense of the company, as what happened when they closed Australia and San Diego.
Should be laws against that kind of thing...
FunkyJ
jackassjackson
Posted 9:44 AM 12/8/08
Dudes, this is just the beginning of layoffs for midway. Lets see, 90 employees, average salary $50k/year, equals roughly $4.5 million. Once they look at a few of the other studios, especially the Chicago one and see all the dead weight, mismanagement and absolutely terrible games, they'll be flying some heads there too! This company has been on the downward path for quite sometime, and if this company is seriously going to try and survive this generation, they will need a major house cleaning. I'm not glad at all that people had to lose their jobs, but honestly I wouldn't care if midway was gone for good, they suck.
jackassjackson
Jonaconda
Posted 10:55 AM 12/8/08
Midway in today reminds me of Acclaim back in my childhood. Occaisional flashes of merit that stuck out like pieces of corn among a seemingly constant stream of shit.
jackassjackson hit the nail on the head. This company is collapsing under the weight of its own overhead. Always sad to see jobs lost in the process, but if Midway hopes to last another ten years, they need to re-evaluate their entire business model from the ground up, and probably trim more fat.
Jonaconda
shufflemoomin
Posted 10:52 AM 12/8/08
Typical fucking suits. 'we feel it was the right thing to do for the future of Midway'. What about what's right for the people who put in all the hours and work and have now got to look for something else? As a coder who's been given the shaft by a company in the past, I hate people like this. Shareholders and directors don't make you fucking money, the people who live behind the keyboards do and you've just bent over 90 of them. The company doesn't deserve to survive.
shufflemoomin
Madriker
Posted 10:15 AM 12/8/08
That sucks, I feel for the people who got axed. I was laid off just a week ago, as were a couple of my friends.
Madriker
Pablos102030
Posted 12:13 PM 12/8/08
A crime game called Criminal? GENIUS!
Pablos102030
null_unit
Posted 1:24 PM 12/8/08
Sounds like somebody borrowed the Activision playbook.
null_unit
CochiseFugue
Posted 1:43 PM 12/8/08
@ps360blows: You, my friend.... are completely correct. According to my NDA Kotaku's public announcement of "Criminal" has effectively released us from our NDAs.... I think..... But yes, the game was (in my opinion) shit and some of us who had the recent chance of working on the project can firmly state that the game was marred with poor design, bad plot, weak at best game play and the graphics where honestly great when it was thought up 4 years ago. But by today's standards lacked seriously. I will obviously miss my very brief tenure, though short, with Midway, but I cannot fault them for canceling a game that became a waste of money months ago and would have been a commercial failure upon release.
CochiseFugue
Nate128
Posted 4:52 PM 12/8/08
Gee... one less "free-roaming crime game" on the market. Darn, I was really looking forward to it, too.
Nate128
EXMIDWAY
Posted 1:41 PM 12/8/08
@ps360blows: you, my friend.... are completely correct. According to my NDA Kotaku's public announcement of "Criminal" has effectively released us from our NDAs.... I think..... But yes, the game was (in my opinion) shit and some of us who had the recent chance of working on the project can firmly state that the game was marred with poor design, bad plot, weak at best game play and the graphics where honestly great when it was thought up 4 years ago. But by today's standards lacked seriously. I will obviously miss my tenure, though short, with Midway, but I cannot fault them for canceling a game that became a waste of money months ago and would have been a commercial failure upon release.
EXMIDWAY
EXMIDWAY
Posted 10:43 AM 12/8/08
@ps360blows: You, my friend.... are completely correct. According to my NDA Kotaku's public announcement of "Criminal" has effectively released us from our NDAs.... I think..... But yes, the game was (in my opinion) shit and some of us who had the recent chance of working on the project can firmly state that the game was marred with poor design, bad plot, weak at best game play and the graphics where honestly great when it was thought up 4 years ago. But by today's standards lacked seriously. I will obviously miss my tenure, though short, with Midway, but I cannot fault them for canceling a game that became a waste of money months ago and would have been a commercial failure upon release.
EXMIDWAY
mixem
Posted 7:25 AM 12/8/08
@Adrock4: dont forget NBA Jam!
mixem
advertised as poetry
Posted 7:17 AM 12/8/08
"our strong holiday line-up which includes TNA iMPACT!, Blitz: The League II, and Mortal Kombat vs. DC Universe"
Three gritty action titles with two carrying an M rating and two being fighters. Way to diversify your lineup, Midway! I guess someone did not give Mr. Booty the memo that success of a media company rests on having a products that are, you know, dissimilar.
It's astonishing that Redstone has not bought the rest of Midway and created a games division for Paramount. It is not as if the Midway name carries much value these days.
advertised as poetry
SuperMoof
Posted 7:04 AM 12/8/08
Glad to see he was able to pimp Midway's holiday lineup and not make light of the situation.
SuperMoof