No official statement released yet, but sadly it's true. Midway is shutting down Rat Bag Games after only having bought out the studio four months ago for $7 million. Founded as Emergent Software in 1993, Ratbag Games released the widely acclaimed post apolcalyptic racer called "Powerslide" in 1998. In recent years, it had established a niche for dirt track racing games on the PC and Playstation 2. The closing down of South Australia's largest game developer has to be a serious blow to the local industry and the 70 or so people that the studio employed...
From Kotaku....
"I'm getting word this morning that Midway shut down there recently acquired Australian studio, formerly known as Ratbag Holdings. A person who says they worked at the studio says the axe was dropped today.
He adds that Midway's Senior Vice President of Worldwide Studios made a personal appearance to read a prepared speech to the stunned staff of more than 50 (including one guy who had just moved to Oz from the UK that week for the job.)
Nice Christmas present Midway.
What's strange is that Midway just bought the studio, known for its racing games, for $6 million in stock this August. Weird timing."
Midway's Senior Vice President of Worldwide Studios Matt Booty said, "We are excited to add this proven studio with solid management and a strong development team to Midway, and establish a firm foothold in Australia, a great location for top entertainment industry talent. We plan to leverage their talent and technology across our internal development studios, which will support our goal of maintaining our leadership in high quality development."
Anyone have any idea why they would buy it and shut it down?
It just goes to show, that even if you become a first-party developer, you aren't safe from the next-gen wave ;).
Developers better wake up and smell the shit they are shoveling if this is true, as it is only the beginning folks
I have a strong sympathy for all of the developers that are now out of a job - it is always nasty when a local developer shuts down...
To the Ratbags - I hope we can absorb you all back into the industry. I'm sorry you're in for a crappy Christmas, but have faith in karma.
So this decision is no reflection upon Ratbag.
So tell me Midway, if these people have been sacked, where are they going to get a job in their chosen profession?
In recent times I have lots a lot of faith in people, this is just confirms it.
One day we will wake up to logic and see that the pursuit of money and commercialism has ruined humanity. Whatever happened to compassion and respect?
All joking aside, from what I remember at the time of Ratbag's purchase, it seemed like an odd move since Midway wasn't doing too well either back then. And I agree with Mick, Midway are on their way down. There have been Midway studios closing up, and Midway really haven't released anything noteworthy in a long time. The only title that could've brought a big return was Gauntlet: Seven Sorrows, but that unfortunately suffered serious delays and problematic development (where their poster-boy developer John Romero got booted as a result).
But for a S7 million purchase, I guess that's peanuts for a company and all it's infrastructure, titles, and 50 employees / developers. I have to say though, I'm pretty shocked at how quick Midway shut down Ratbag after only having them for 4 months!! I think an alternate news heading for this scenario would be "Midway gives Ratbag S7 million to close down". One wonders if Ratbag could have continued developing their niche of racing titles without Midway's intervention...
Then why do you think that Midway are having such troubles and closing studios then smart guy?
No, I suppose it has nothing at all to do with the pressures of developing quality titles for the next-gen platform, such as rising development costs and expectation in gaming quality - which is far more important, as only something like 5(percent) make all the profit for all the titles released in that year.
I guess Midway owns all rights to the old dirt games? Any Ratbager programmers out there reading this, send me the tools to unlock Saturday Night Speedway and World of Outlaws 2002 Please. lol.
Man this game development market is tuff. I just did a google on Midway and found a report about disappointing financial results, (they losing money), and they have had disappointing sales this year, but then at the end a Midway honcho says he's still excited and it looks like they have been buying up all sorts of studios and shutting them down too.
I have had and still do have so much fun with the dirt track games.
Bugga!
:-(
nzrikstr@walla.com
:-) .-)
July 28 2004
Midway loses S25.7 million during the first half of 2004; president David Zucker says "The extraordinary annual losses are behind us."
http://www.gamespot.com/news/6103665.html
-- sorry to dissappoint mate, but they've only just begun... read on.
Nov 7 2005
"Midway posts S30 million third-quarter loss. Revenue rebound a thing of the past as Suffering publisher returns to negative growth; Q4 looks to be more of the same" - http://www.gamespot.com/news/6139323.html
"During the first half of the console cycle, product quality, average markets, and poor decision making hurt Midway," said Zucker during the conference call.
----
So 2 studios shut?? Is that confirmed?? Hope Pitbull are safe, it would be a shame to lose them too due to "bad decision making". Whoever is making the bad decisions should be looking at their employment there very carefully.
I suspect however, this is only the beginning of massive consolidation in Australia and abroad. Much more investment, capital and professionalism is needed in producing the next gen of games.
We've been given a day or so to provide Midway with a plan as to how we can save the game/company, but today (Thursday) at 2pm they will tell us their final decision. It's not likley to be anything other than the total shutdown of the compay. And if it was, who'd want to stay?
Thanks in advance,
Rikstr
http://www.ratbaggames.com/index_no.html
I had wanted to work at Ratbag for years, seems that will never have a chance to be now.
Goddamn I feel bad for Greg and the people who built this company up with their sweat and hardwork, here's hoping that they can start again.
Can any ex-Ratbag employee say if there is a chance of something re-emerging here in Adelaide?
Maybe you'll see Ty the Dirt Track Racer coming out soon :)
I saw the same thing happen when Acclaim took over UK studios years ago, though not quite as fast.
Shame, Adelaide's a great city, much underrated.
Some of the major ones include (not in any order):
IR GURUS
REDTRIBE
BLUE TONGUE (THQ)
ATARI
TANTALUS
TORUS
So I'm not coming back to a job then?
Well I guess I'd better worry about the important issues now : What's the severance package like, someone? And wher's mine! :-)
Bah Humbug! Merry Christmas, Ex-Workmates...Stay in touch!
CsRx:
Please send your email contacts to me and I will see if I can get you onto the ex-ratbag mailing list. That way we can communicate direct.
my email is karl.burdack@internode.on.net
So sorry for you guys.
Also, we received your email Karl.
These are our work samples... in case if any other game company is interested in employing us.
Also some people from Activision USA and Funlabs Romania can sent references about us.
http://designoholics.xhost.ro/port-folio/roxana.html
http://designoholics.xhost.ro/port-folio/cosmin.html