14 DAY TRIAL // A few weeks ago, Midway presented its financial results for the year of 2007 and the financial projections for 2008. The results themselves were very troubling for the Midway shareholders. Revenue from sales went down by more than 10 million dollars, while losses went up to $97.4 million, compared to 2006's number of $77.8 million.
At the time, Midway president and CEO, David F. Zucker, said that: "Now that we have overcome many of the technology hurdles that we encountered over the last year, we anticipate smoother launches as we release our strong 2008 line-up." Optimism seemed to be the order of the day at Midway, as if a clear turnaround for the company was just around the corner.
Now, hopes of a turnaround seem mostly to have disappeared and more and more important people are deserting Midway. The first to skip ship was vice-president, Chief Financial Officer and treasurer, Thomas Powell. Another vice-president, Ryan O'Desky, has taken the interim role while the company finds a permanent replacement. The resignation of the main money man in the company might be a clear sign that financial results are worsening.
Steve Allison, who was the main marketing specialist and also a vice-president, announced his departure from the company at the same time as Powell, but he said he would take on an adviser role until the end of March, when a permanent replacement will be named.
And now, Midway says that its president and CEO is also leaving. David F. Zucker will be replaced by Matt Booty for an interim period. Matt was formerly the vice-president of worldwide studios.
Shari Redstone, who is chairman of the Midway board, commented that: "dynamic new leadership is needed to bring Midway to its full potential. I believe that Midway has the resources and creative capability to once again be competitive with the best in the video game business." It's a nice try at spinning the bad to awful news coming out of Midway recently, but the bottom line is that Midway might be having a very bad year, losing both money and important people.
The recent changes might lead to a turnaround of the company, or to more and bigger problems. As the news regarding Midway breaks, we'll be sure to comment.