Midway Loses Key Executives After $34.8M Q2 Loss

Struggling publisher Midway announced that it incurred a weighty $34.8 million net loss in its fiscal year 2008 second quarter, which ended on June 30, 2008.

Net revenues for the company's second quarter amounted to $23.4 million, down from $31.8 million in the same period last year. The posting follows a similarly disappointing first quarter for the publisher, which saw $34 million in net losses.

Following the company's quarterly disclosures, Kotaku is reporting that three of Midway's senior staff have resigned. Among the departing staff is Mike Bilder, head of Mortal Kombat vs. DC Universe and Stranglehold developer Midway Chicago, who accepted a position at another Chicago-based game development studio.

"We are evaluating internal and external candidates for the role, and both Blitz: The League II and Mortal Kombat vs. DC Universe, as well as other projects in the Chicago studio, are on track for successful launches," a Midway representative stated.

Midway marketing vice president Mona Hamilton and media relations director Reilly Brennan were also confirmed to have left the company, though no further details were provided. Two other senior staff members are also rumored to have left Midway, but have not yet been identified by the company.

The poor quarterly performance and staff departures are the latest developments in what has proven a difficult year for Midway, which late last year announced a massive restructuring effort to bring the company to its first annual profit since 1999.

The company recently announced a series of executive promotions to replace departing executives CEO David Zucker, CFO Thomas Powell, and senior marketing VP Steve Allison.