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Midway Share Losses As Market Moves To Home Consoles
Midway announced last week that it had recorded losses during the December fiscal quater, resulting in a loss of 8 cents per share. Citing the current industry transition from arcade machines towards 128 bit home market consoles such as the Playstation 2 and Xbox and the decrease in demand for older software for Playstation and Nintendo64 systems as a primary reason for the share loss, Midway is nevertheless optomistic that by Christmas they will again be enjoying profits with releases for the new platforms.
Midway CEO Neil Nicastro warned that the immediate future, however, is expected to be worse than the previous fiscal quater. TheStreet.com quotes Mr Nicastro as saying, "Next quarter we will have losses greater than the current quarter's loss -- this is not new news." Business analysts are predicting that next quarter's losses will result in a 16 cent per share drop.
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