With all of the changes at Midway in ownership, it really is no surprise that Midway has filed for Chapter 11 bankruptcy protection in the U.S. The filing will not affect the company’s European operations, where it is a business as usual for right now.

While the reorganization step is likely necessary, the company has already been working on realignment of its operations and to improve execution. The company will continue to work toward putting a structure in place that can generate the revenue necessary to satisfy its creditors.

The company has had some success with titles they have recently released. Mortal Kombat vs. DC is just over two million units shipped and TNA Wrestling has shipped over one million units. Beyond this, the company recently announced the next installment in the Mortal Kombat franchise and has Wheelman, which early reports have indicated looks very promising, and This is Vegas, which has not really taken shape enough to know how successful it might be when released.

The filing will give the company more time to figure out their next move and to evaluate which long-term course the company might be headed toward. Obviously, the restructuring is necessary from what we hear, but we have heard from several sources that Midway might be forced to do some additional belt tightening in order to make this reorganization work. Midway still has some attractive core assets that the company might have to consider parting with to raise cash, according to our shadow dwellers.