Featured Articles

Analysts expect ARM to do well next year

Analysts expect ARM to do well next year

British chip designer ARM could cash in on the mobile industry's rush to transition to 64-bit operating systems and hardware.

More...
Huawei and Xiaomi outpace Lenovo, LG in smartphone market

Huawei and Xiaomi outpace Lenovo, LG in smartphone market

Samsung has lost smartphone market share, ending the quarter on a low note and Xiaomi appears to be the big winner.

More...
Intel Broadwell 15W coming to CES

Intel Broadwell 15W coming to CES

It looks like Intel will be showing off its 14nm processors, codenames Broadwell, in a couple of weeks at CES 2015.

More...
Gainward GTX 980 Phantom reviewed

Gainward GTX 980 Phantom reviewed

Today we’ll be taking a closer look at the recently introduced Gainward GTX 980 4GB with the company’s trademark Phantom cooler.

More...
Zotac ZBOX Sphere OI520 barebones vs Sphere Plus review

Zotac ZBOX Sphere OI520 barebones vs Sphere Plus review

Zotac has been in the nettop and mini-PC space for more than four years now and it has managed to carve…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Tuesday, 12 August 2008 07:46

Layoffs confirmed at Midway Austin

Written by David Stellmack

Image

Unannounced project in development canceled

Reductions continue in the gaming software development world as studios continue to close, merge, or realign in an effort to remain profitable. The latest victim this time around appears to be Midway Austin.

Reports now have Midway Austin canceling an unannounced project that had been in development. While we don’t really have any details yet on what this product was, we have been able to confirm through our sources that the cancellation of this project will result in the layoff of between 90 and 130 Midway Austin employees.

The decision by Midway to lay off these employees is part of an overall plan to reduce 10% of the company’s work force. By terminating this project, Midway will be taking a $10 million write down in development costs along with another estimated $1.2 million in severance packages related to this layoff.

Unnamed sources indicate that the Midway Austin Studio will stay open despite the layoffs and continues to be home to the company’s Central Outsourcing Group. In addition, reports claim that two small internal teams will continue to soldier on working on new prototyping for two future announced projects that are supposedly new IP for the company.

Inside sources claim that the decision was difficult for Midway CEO Matt Booty, but the decision was made in the best interests of the future of the company. Midway has struggled over the past couple of years in not receiving the hits and acclaim that the company has been known for in the past.

Several Midway franchises and recent titles have not proved to be as popular with players and this has contributed to a recent downturn in Midway’s fortunes. Many insiders claim that the loss of the NFL license to the Blitz franchise, as well as the lack of popularity of the Hits franchise, has also contributed to downturn at Midway.

Some analysts claim that it is simply a case of Midway not making a successful transition to the Xbox 360, PlayStation 3, and Nintendo Wii systems with titles that gamers are excited about playing.

Last modified on Tuesday, 12 August 2008 07:54
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments