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."
"These initiatives, along with the other steps we have taken this year, are a response to the specific challenges we are facing at Midway, many of which have been amplified by the current economic conditions," said Midway CEO Matt Booty.