On Thursday, Midway Games filed for a chapter 11 bankruptcy, which means it will still plans to stay in operations and not liquidate its stock, to ward off creditors. The company is unlikely to pay off the $281 million debt it has occurred over the years. The filing came the same day Square Enix Co., a company based in Tokyo, Japan, known for Final Fantasy, offered to buy Britain's Eidos Interactive, possibly influencing the company to file.
Midway Games has been looking for a buyer for the company but has yet to find any purchaser, and will be allowed to file for a chapter 11. Midway joins a growing number of video game companies feeling the pinch of the recession, while being a once popular video game brand name. The company is known for popular arcade and console games like Mortal Kombat, Doom 64, NHL Hitz, San Francisco Rush, Game Party, TNA iMPACT and many others.