Midway Games has revealed that it has come to 'mutually beneficial' terms with licensing partners resulting in the cancellation of future versions of related game properties and associated development expenditures.
The resolution of these licences accelerates non-cash charges into the third quarter ending September 30th 2008 and, combined with other non-cash charges, results in a revision of Midway's estimates for Q3.
The firm now expects a Q3 net loss of $0.70 per basic and diluted share, compared to its previously adjusted estimate of a net loss of approximately $0.49 per basic and diluted share.
"The resolution of these licensing arrangements on good terms for the company is a very positive step as we continue to review Midway's involvement with underperforming projects and focus on our core properties," said Matt Booty, interim CEO and president at Midway.
"Our fall line-up and strong pipeline of games that tie-in to marketing leading licences like DC Comics and TNA Wrestling, underscore our strategy of aligning with consumer and entertainment properties that can drive a solid gaming experience."