Midway Offloading Mortal Kombat (And Screwing Former Employees)

Midway, publishers of the Mortal Kombat franchise, are in trouble. And how are they looking at getting out of trouble? By giving Midway executives bonuses! Oh, and by selling off Mortal Kombat.

Court documents surrounding the company's fight for survival have shown that Midway executives have set aside $3,755,000 in bonuses, which is to be divided amongst the company's upper management tier if they're able to meet certain goals.

One of those goals was in offloading Wheelman, which Ubisoft just picked up. So that's $497,500 in the pocket. Another objective is being able to secure the "execution of an asset purchase agreement for the sale of Midway's Mortal Kombat franchise assets".

On the one hand, selling off the Mortal Kombat rights might net them enough cash to keep their heads above water. On the other, however, Mortal Kombat is the only thing Midway have left.

Oh, and if you're wondering where a company can find $3,755,000 while in the midst of filing for bankruptcy, that's easy! They can take it by holding out on paying sacked employees the remainder of their PTO (personal time off), something Midway originally promised they'd do.

Below is an original letter, dated February 9, promising the payment of PTO. Below that, a letter dated February 20, outlining Midway's plan to suspend those promised payments.



Midway Games Seeks Approval of a Key Employee Incentive Plan [netDockets]
[thanks Tech Noir!]


Comments

    Working in this industry, I felt the urge to post here and to basically say how utterly absurd and disgusting this is.

    Midway is a disgrace. The upper level employees should have been sacked long ago for hanging onto dead franchises like Mortal Kombat (which has been going downhill for far too long) and bringing absolutely nothing new to the table that may have saved this once great developer. Instead, they are being given bonuses?

    Pathetic.

    Absolutely disgraceful. But unfortunately thats how a lot of companies do go bankrupt; CEO's and executives have such high salaries and get bonuses that run into the millions that they simply dont care anymore. They are set for life; so who cares if the company goes bankrupt? And in a lot of cases they do. Unfortunately the harder you work the less you earn.

    It's unbelievable that so many companies are doing this. Idiotic, incompetent and greedy CEOs and executives who shouldn't be trusted with a hot dog stand are ruining the global economy.

    The fact of the matter is that the executives make the decisions and they don't have to decide what's best for employees, they just have to decide what's best for the company. Having already failed to do that they're now basically trying to carry as much as they can while they jump ship.

    If you consider their absolutely terrible management of Midway it is unlikely another Games Studio will ever hire them, so they're basically pinching their retirement money from the pockets of their former employees. Personally I am repulsed

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