Midway Games

Midway Games Inc.

Logo (1997–2010)
Formerly	Midway Manufacturing (1958–1982, 1988–1996) Bally Midway (1982–1988)
Company type	Public
Industry	Video game industry Consumer electronics
Founded	November 1, 1958; 65 years ago (1958-11-01)[1]
Founders	Henry Ross Marcine Wolverton
Defunct	June 9, 2010; 13 years ago (2010-06-09)
Fate	Chapter 11 bankruptcy; majority of assets acquired by Warner Bros. Interactive Entertainment
Successor	Warner Bros. Interactive Entertainment
Headquarters	Chicago, Illinois, U.S.
Key people	Matt Booty[2] (President and CEO)
Products	Ms. Pac-Man Spy Hunter Rampage Mortal Kombat NBA Jam Cruis'n NFL Blitz
Revenue	US$219.6 million (FY 2008)[3]
Net income	-US$191.0 million (FY 2008)[3]
Owner	Bally Manufacturing (1969–1988) WMS Industries, Inc. (1988–1998)
Number of employees	540[3] (February 2009)

Midway Games Inc., known previously as Midway Manufacturing and Bally Midway, and commonly known as simply Midway, was an American video game developer and publisher. Midway's franchises included Mortal Kombat, Rampage, Spy Hunter, NBA Jam, Cruis'n and NFL Blitz. Midway also acquired the rights to video games that were originally developed by WMS Industries and Atari Games, such as Defender, Joust, Robotron: 2084, Gauntlet and the Rush series.

The company was founded as Midway Manufacturing in 1958, as an amusement game manufacturer. The company was then purchased by Bally Manufacturing in 1969. In 1973, Midway moved into the interactive entertainment industry, developing and publishing arcade video games. The company scored its first mainstream hit with the U.S. distribution of Space Invaders in 1978. Bally then consolidated its pinball division with Midway in 1982, which was renamed Bally/Midway. In 1988, Bally Manufacturing sold its amusement games operations to WMS Industries, the former Williams Electronics, which used the plain Midway name for video games while using the Bally and Williams names for pinball.

In 1994, WMS purchased Tradewest to bring publishing of home video game market in-house, with the latter becoming Midway Home Entertainment in 1996, the same year that Midway made its initial public offering of stock. In 1998, WMS spun off its remaining shares of Midway. Midway was ranked the fourth largest-selling video game publisher in 2000.^[4]

By the end of 2000, Midway continued to develop and publish video games for home and handheld video game machines, but it experienced large annual net losses and engaged in a series of stock and debt offerings and other financings and borrowings. Sumner Redstone, the head of Viacom and CBS Corporation, increased his stake in Midway from about 15% in 1998 to about 87% by the end of 2007.^[5] In December 2008, Redstone sold all his stock and $70 million of Midway debt to Mark Thomas, a private investor, for $100,000.^[6]

In February 2009, Midway Games filed in Delaware for bankruptcy.^[7] Warner Bros. Interactive Entertainment purchased most of Midway's assets, and Midway settled with Mark Thomas to relinquish his Midway stock and debt.^[8][9] The U.S. District Court in Chicago dismissed a lawsuit alleging that former officers of Midway misled shareholders while selling their own stock.^[10] In 2010, the bankruptcy court dismissed claims against Redstone concerning his sale of the company to Thomas and approved Midway's plan of liquidation.^[11] Midway terminated the public registration of its securities in June 2010.^[12]