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Midway has posted a second quarter loss of $29.9 million on revenues, down $10 million from the same period last year. Much of the loss has been blamed on the poor performance of Unreal Championship 2, with their only other big release, Area 51, performing much better than the Unreal sequel.
As a result of poor sales, Midway has adjusted its projections for the next quarter, with a loss of $19 million on revenues of $30 million. Projections for the full year are also down, with revenues down to $200 million and a net loss of $60 million. Despite this, analysts remain optimistic over the future of the company.
“We believe that as Midway continues to focus on game quality, its outlook will continue to improve,” said Wedbush Morgan Securities analyst Michael Pachter. “We believe that the company is building the infrastructure necessary to support significantly higher revenues, and expect this investment to pay dividends in 2007, if not earlier.”
Despite these positive comments, Patcher said the company is still some time away from consistent profitability.
“The company’s turnaround is under way,” he said, “but we believe that Midway may still be 12 – 18 months away from consistent profitability.”
In related news, Midway announced this morning that it has acquired Ratbag Games, an Australian studio. The studio which was behind such titles as Powerslide and The Dukes of Hazzard, will now be renamed Midway Studios Australia and is working on a number of unannounced games.
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