'Mortal Kombat' Sensei Midway bankrupt

Economic woes continue to hit what some economist call a recession-proof industry. Midway will reorganize as banks temporarily relieve a loss of over $1.5 million. Nintendo to blame?

Midway's bankruptcy comes as the videogame industry grapples with the slumping economy and continued success of the Nintendo Wii, reports Bloomberg news.

The Chicago-based company suffered costly development with no return, failing to develop hit titles on the next-generation of consoles. Mike Hickey, a videogame analyst for Janco Partners Inc., said: "If you have a couple of misses, you drain your cash and then you exhaust yourself."

Midway is considering selling their 'Mortal Kombat' license to Activision Blizzard.

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