Gamertell

As we reported last month (December 2008), Midway Games is in dire financial straits. Creditors could have demanded payment this month (January 2009) but have instead opted to extend the payment deadline to February 19, 2009.

Finances became even more of an issue for Midway when then majority shareholder Sumner Redstone unloaded his controlling interest for only $100,000 to investor Mark Thomas. The change in control triggered clauses in Midway’s debt agreements allowing noteholders to come a-callin’ right now.

Wedbush-Morgan analyst Michael Pachter told GamePolitics the move is in those creditors’ best interest. Midway’s debt is in the neighborhood of $150 million and it’s doubtful the company’s assets would be worth that much if liquidated.

Unfortunately for Midway and those hoping it becomes profitable, the game maker fired off the bullets it hoped would save the company during the 2008 holiday season. Blitz:The League II, TNA Impact, and Mortal Kombat vs. DC Universe were the high-profile trio of games execs were counting on to turn things around.

The football and wrestling game genres are plenty profitable, but the Blitz sequel and TNA wrestling game didn’t exactly leave John Madden or WWE boss Vince McMahon quaking in their boots. The implausible story but generally well-received fighting mechanics of the Mortal Kombat game have at least made that franchise relevant again. It remains to be seen whether a rejuvenated MK will remain a feather in Midway’s cap or become the most valuable asset it has to liquidate.

Now it could be up to XXX himself, Vin Diesel, to save Midway Games. Midway’s next big release is Wheelman, a driving game starring the Pitch Black box office hero. That is slated to hit stores February 16, 2009, just three days before Midway needs to start paying people. For Midway’s sake, let’s hope that game is better than Babylon A.D.

Read [Edge] Via [GamePolitics] Also Read [Gamertell]