Midway Tightens Belt, Cuts Game Deals

Video game publisher Midway has announced it has "optimized" its video game licensing deals, meaning it's canceling titles it doesn't see as central to its business.

Game publisher Midway has announced that it has “optimized” its game licensing, which will result in the cancellation of future games that aren’t build on what Midway considers its “core” properties. Although the company did not offer a list of game titles that will be discontinued, the company seems pretty sold on its Unreal and Mortal Kombat franchise, so it would also be safe to assume its partnerships with DC Comics and TNA Wrestling are still intact. The company also has licensing deals with Major League Baseball and the National Basketball Association; the status of those deals is not known at this time.

“The resolution of these licensing arrangements on good terms for the company is a very positive step as we continue to review Midway’s involvement with underperforming projects and focus on our core properties,” said Midway interim CEO Matt Booty, in a statement.

Buying its way out of non-core licensing agreements will increase Midway’s loss for the third quarter of 2008: the company had previously expected to lose about $0.49 per basic and diluted share, and now expects that number to jump up to $0.70 per share.