Manufacturer of Mortal Kombat, Ms. Pac-man and Spy Hunter Midway filed for bankruptcy on the 12th, citing a recent change in leadership as the cause of its financial woes.
The company had changed hands from Sumner Redstone, Head of Viacom/CBS Corp, to a private investor who picked up the game maker for $100,000 and some $70 million in debt.
Midway's major contributions of the video game world, aside from the aforementioned titles, include a huge library of arcade titles, a huge quantity of which saw success in both arcades and consoles.
According to the AP, a judge has okayed the bankruptcy filing and has agreed to let the company pay vendors and employees to continue operating.
While times are obviously difficult for most people, video games sit in that generally presumed to be unassailable entertainment niche. While other companies, such as Take-Two Interactive, have faced financial losses, no company as large and well known as Midway have filed for bankruptcy. Hopefully this doesn't become a trend.
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