Midway Fires 25% of Staff, Cancels Games

Facing $240 million of debt, struggling publisher Midway has announced a cost-cutting plan that will see the company axe 25% of its workforce and cancel several games. Under the plan, Midway will close its Austin-based development branch, which was most recently responsible for BlackSite: Area 51. After the shooter released, creative director Harvey Smith described the game's development as 'so fucked up.' In addition, Midway Chicago (Mortal Kombat vs. DC) and San Diego will see layoffs. The cancelled games were slated to hit in 2010 or 2011, and had not been made public. Midway's announcement described the halted projects as 'non-core.' As a result of the cuts, Midway expects to take a charge of $1.6 million in the fourth quarter.