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Midway execs found not guilty in conspiracy suit

by Christopher Grant { Oct 27th 2009 at 11:22AM }

You know how this works: You're a shareholder in a major company -- let's say a major video game publisher like ... Midway Games -- and while the suits assure you that, despite lagging sales and a lousy portfolio, everything's going to be "OK!"

Things started looking dodgy when CEO David Zucker abandoned ship in March of 2008. "Everything okay in there?" you ask. "Yup, everything's fine," Midway responded, while installing Matt Booty into the position. Then chairwoman Shari Redstone, daughter of owner Sumner Redstone, resigned in November 2008. "Alright, this sounds really bad!" you cried. "Seriously, don't worry. It's fine," Midway responded (they'd put Booty in that position in January of the following year). And then, in December, Sumner Redstone sold his shares in the now clearly troubled publisher for the bargain basement price of $100,000 to mysterious investor Mark Thomas ... and then, the layoffs began.

So now you, and the rest of the shareholders in NYSE: MWY want to hold the executives who kept you in the dark accountable. According to Develop, after months of hearing allegations, District Court judge David H. Coar found five Midway executives – including former CEO David Zucker and CFO Thomas Powell – "innocent of conspiracy to deceive the public about the health of the fallen company." The reason? The shareholders had not "adequately alleged the direct liability" of the execs.

Okay, so it wasn't a "conspiracy" (or whatever other fancy law school words the "law" requires) but we understand your pain. Now, have we told you about the opportunities at Joystiq Publishing ...

Ex-Midway guy named VP of sales for Sega

by Alexander Sliwinski { Oct 1st 2009 at 8:00PM }

Sega of America enthusiastically announced today the hiring of Brad Wildes as senior vice president of sales at the publisher. According to the company's press release, Wildes brings 15 years of "successful management experience" to the job. Skills he acquired at Microsoft, Mattel, Konami and, most recently, Midway Home Entertainment.

Yes, Wildes' most recent gig was as VP of sales for North America and Asia at Midway, where he -- according to Sega, once again -- "successfully managed such titles as Mortal Kombat; Game Party; the Unreal franchise and NBA Ballers."

Midway is dead, friends, due in large part to low sales numbers for major franchises. Our definition of "successful" is obviously slightly different from that of Sega of America's.

From the ashes of Midway Newcastle, Atomhawk Design rises

by Ben Gilbert { Sep 3rd 2009 at 2:01PM }

One of our favorite things about the game industry (not the game business, mind you) is its unflappable resilience. Take, for instance, the story of Midway Newcastle. Even after the staff got a 60-day warning of the studio's imminent closure and was shut down preemptively, some members of the team were able to band together and form a new company, Atomhawk Design.

Billing itself as "a leading creative visualization and digital art production company," Atomhawk plans on creating digital art for not just video games, but also "film and online." We're not sure how much of the ex-Midway Newcastle folks made the jump to the new company, but we've asked Atomhawk for comment.

Tradewest Games hints at upcoming IP lineup reveal

by Ben Gilbert { Aug 26th 2009 at 1:00AM }

Martin Spiess has been busy the past few months, between raising €1 to buy Midway UK and France and resurrecting the long gone Tradewest Games moniker. The ex-Midway exec's acquisition of the two company branches went light on the details in the SEC filing, leaving us with a handful of questions for the recently re-branded company.

We contacted Tradewest to find out exactly what the acquisition means for the future of the company, in terms of assets gained. "We`ve got a portfolio of [our] own IPs and will announce highlights from our line-up over the next weeks," a representative told Joystiq. And what does it mean when the filing says Mr. Spiess has acquired the UK and France offices, specifically? "This includes all of the companies assets ... that also means that Tradewest has direct access to two of Europe´s biggest markets for games products." Unfortunately, the rep couldn't tell us much more at the moment.

And yes, we're still keeping our fingers crossed for Battletoads.

Midway Europe buyout complete, renamed Tradewest Games

by Ben Gilbert { Aug 21st 2009 at 7:20PM }

GamesIndustry.biz reports that the acquisition of Midway's English and French offices, by Martin Spiess, and the German office, by Uwe Fürstenberg and Hans Meyer, for a single Euro combined has been finalized.

On the way more exciting side of this news, however, is the announcement that the UK and France offices will be re-branded as Tradewest Games, resurrecting the name from its rather dusty tomb. According to Spiess, Tradewest will become "a European full service provider in the fields of game distribution and publishing," a transition made possible by "a well-experienced European team behind [TG] that has proven its expertise and know-how in the past years by bringing to market some of the biggest games projects in the world."

Interesting that you note that, Mr. Spiess, as none of the games released in "the past years" have been Battletoads. What of that, then? We've contacted Tradewest to find out exactly what this will mean for those classic IPs, among other things, and will update this post if we hear more.

Midway UK and France offices bought for 1 euro (combined)

by Ben Gilbert { Aug 12th 2009 at 9:00AM }

In a move that leaves us scratching our heads, ex-Midway Europe managing director Martin Spiess has purchased the Midway UK and France executive offices for a combined amount of one euro. According to the SEC filing, Mr. Spiess formed Spiess Media Holding UG to purchase the companies, in what MCV UK calls a "management buyout." Additionally, Midway Germany's general manager, Uwe Fürstenberg, has purchased the German branch for an undisclosed amount.

The kicker on all of these business dealings? In buying the UK and France offices, Spiess has tied his company to "a payment of approximately One Million Seven Hundred Thousand Dollars ($1,700,000) from [Midway Games Limited] to [Midway USA]" at the "closing of transactions." Spiess has 90 days to turn around the Midway-branded stock. Good luck, Mr. Spiess! From what we've seen of Midway over the past six months, you're going to need it.

[Via MCV UK]

Silver lining: THQ acquires 40 percent of Midway San Diego employees, maybe more

by Ben Gilbert { Aug 9th 2009 at 1:30PM }

You've been reading an awful lot about Midway business minutiae over the last six months, so we won't bore you with too many unexciting details about THQ buying Midway's San Diego studio for $200k last week. The most important thing for you to know is that out of 100 employees, 40 have been offered jobs by THQ, and more positions may be opening, the Chicago Tribune reports.

According to the SEC filing, the TNA iMPACT! license wasn't part of the deal, a strange omission considering THQ publishes UFC games. The deal is all but finalized, awaiting Midway's bankruptcy court's approval and an agreement between THQ and Warner Bros. over the sharing of certain undisclosed IPs (the terms of which have already been settled). Considering the sad tale surrounding the shuttering of Midway Newcastle, we're glad to finally be writing something somewhat positive in the wake of Midway's collapse.

[Via Kotaku]

Warner Bros. trademark transfer of Midway begins

by Ben Gilbert { Aug 6th 2009 at 4:30PM }

According to recently filed trademarks, the transfer of Midway's various game licenses to Warner Bros. Interactive has begun. Supererogatory spotted the first group of games that have been approved by the US Patent and Trademark Office -- including Robotron 2084, Defender, Joust and Wheelman, among others -- and asserted that the rest have yet to go through.

With the possible re-branding of the ex-Midway Mortal Kombat team to WB Games Chicago and dissolution of Midway's executive ranks a few weeks ago, it appears as though the dismantling of Midway Games as it once was is nearly complete. We'll always have NBA Jam, right Midway?

Ex-Midway Newcastle dev spills the beans on the studio's closure

by Ben Gilbert { Aug 4th 2009 at 4:30PM }

GUI artist Steven Pick has detailed on his blog the last five or so months of working at Wheelman developer Midway Newcastle (with heartbreaking detail, might we add). In doing so he reveals the various happenings at the developer while things at Midway HQ were falling apart. "The company was still operating as normal, but the Chapter 11 thing was like a silent dread-spectre hovering over all of us," Pick says of the February bankruptcy filings.

And as for Necessary Force, the IP from Midway Newcastle that was revealed not too long ago? "We got to a point where the game could be pitched - at the same time, we had a 60 day notice through from the London office," Pick says. Unfortunately, the pitches fell through and the game disappeared -- aside from a handful of Edge Magazine writers who saw it, that is.Though he notes that a group of employees were picked up prior to the studio's closure by Crackdown 2 dev Ruffian Games, the remaining employees in Newcastle were caught off guard by a surprise early studio closure -- a surprise that brought with it the news that they wouldn't be receiving their final paychecks.

In all honesty, it would be impossible to do Mr. Pick's entire story justice in a concise blog post, so do yourself a favor and give the whole thing a read at his site.

[Via GamesIndustry.biz]

Warner Bros. highlights Mortal Kombat, Spy Hunter IPs in Midway acquisition

by David Hinkle { Aug 4th 2009 at 8:30AM }

After snatching up Midway and dumping some of its execs, Warner Bros. looks like it's finally starting to get somewhere with its acquisition. There's a new guy heading up what is now WB Games Chicago and, according to Develop, Warner Bros. has confirmed that Mortal Kombat and Spy Hunter are now part of its forthcoming plans.

Acquiring these Midway properties gives Warner Bros. opportunities not only for new games (or re-releases of old ones), but also projects "adapted for film or TV, leveraged for consumer products, or licensed to third parties." While we wouldn't mind seeing someone take a stab at a new Mortal Kombat game, we desperately hope Warner Bros. doesn't go for a new movie. The world does not deserve any more of this.

This is still alive: This is Vegas

by Alexander Sliwinski { Aug 3rd 2009 at 11:00PM }

Wow, Warner Bros. finally acknowledged that This is Vegas still has a pulse. Speaking with G4tv.com, the publisher, which acquired the rights to the game during its acquisition of Midway, stated that the Sin City adventure had not been canceled and is still in production. Although there are no further details, Surreal Software has not been stripped of development duties.

We really haven't heard anything about This is Vegas since 2008, which is when it was originally supposed to release. We're following up with Warner Bros. now to see if the publisher would like to make a new release window -- we're guessing 2009 isn't in the cards.

Gallery: This is Vegas

Warner Bros. promotes exec following Midway acquisition

by Ben Gilbert { Aug 1st 2009 at 2:30PM }

Warner Bros. executive Jeff Junge has a laundry list of valuable gaming credentials on his resume. From recently leading the acquisition of a failing Midway Games to an early investment in dark magic engine OnLive, and even spearheading the purchase of TT Games a couple of years back, Junge is no stranger to the game industry. And all that would help to explain why, late this week, Warner Bros. announced the promotion of Junge to senior VP of business management for Warner Bros. Home Entertainment Group. The Home Entertainment Group includes, among many other things, the company's gaming division.

According to the release issued by WB, Junge will continue to "drive mergers and acquisitions" for the company. We've been told on good faith that neither "mergers" nor "acquisitions" are any type of automobile. How do you plan on driving them then, Mr. Junge? Hmmm?

[Via Edge]

'New THQ' hires old Midway exec to head Darksiders marketing

by Alexander Sliwinski { Jul 28th 2009 at 10:30AM }

THQ has hired, as MCV puts it, "popular Midway exec Mark Cook" as marketing manager for UK and Europe. Cook will head the marketing campaign for Darksiders, which will cover seven months and form part of the company's new strategy to get the word out about its games earlier.

The "new THQ" has been on a roll recently with hits like UFC: Undisputed and Red Faction: Guerrilla. With a January 2010 release planned, Darksiders has plenty of time to build hype -- and believers.

Mortal Kombat team sheds Midway skin for 'WB Games Chicago'

by Ben Gilbert { Jul 27th 2009 at 4:30PM }

Picked up by Warner Bros. in the auctioning off of Midway Games' assets, the development studio behind the Mortal Kombat franchise has seemingly been re-branded by its new corporate overlords. Superannuation spotted the info in the LinkedIn profile of Connie Gabelein, a human resources employee currently with Warner Bros. and formerly with Midway (and apparently never part of the management that was recently let go from the failed publisher). Ms. Gabelein lists her position as a "recruiter/HR generalist for the WB Game family of studios, which includes Monolith Productions, Surreal Software, Snowblind Studios and WB Games Chicago."

Furthermore, former Midway CTO/now "head of WB Games Chicago" Michael Weilbacher's LinkedIn profile seems to corroborate our suspicions. We've contacted Warner Bros. and Midway for comment and will update this post with more information as we get it.

Source 1 - Superannuation
Source 2 - LinkedIn Profile of Connie Gabelein
Source 3 - LinkedIn Profile of Michael Weilbacher

Midway execs get the boot, entire Chicago dev team acquired by WB

by Ben Gilbert { Jul 17th 2009 at 9:08AM }

After recently giving its San Diego and Newcastle studios the required 60 day warning that their offices are to be closed, Midway announced yesterday that its corporate headquarters in Chicago is shutting down. According to a recent US Securities and Exchange Commission filing by Midway, the closing affects all 60 employees currently working at the offices -- including CEO Matt Booty -- representing "approximately 20% of the company's global workforce."

Interestingly, though Warner Bros. purchased a $33 million-sized chunk of the company last month, the report states that WB paid out more to the tune of $49 million "including the assumption of certain liabilities" -- presumably some of the debt owed to creditor. A Midway rep told the Chicago Tribune that, while the executive offices have been closed and everyone let go, all 100 employees at the company's Chicago development studio have been offered jobs by WB. Oh, right, we almost forgot -- yes, the Midway San Diego offices (and its TNA wrestling license) are still up for sale -- at least for another 45 days or so.

Source 1 - Kotaku
Source 2 - Chicago Tribune
Source 3 - US Securities and Exchange Commission

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