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Speculating on Ratbags Demise

Company summarises the whole debacle on Ratbag studios, and ponders on some of the speculations around for Midways decision to close down the Adelaide studio...

Speculation is rife as to why anyone would want to pay good money for a small specialist games company like Ratbag only to trash it four months later. Some say that Midway, which had a dreadful final quarter in calendar year 2005, losing US$29 million on revenues of US$29 million, simply decided to cut its losses by closing Ratbag, as well as it San Diego studio. Others, who note that Midway has recently bought a German PS3 developer, have speculated that Midway Games was dumping its PlayStation 2 games makers for games developers working in the PS3 arena.

On close scrutiny, however, neither of the above two theories would appear to make any sense.

The ITwire article ends with a warning to small local companies with good technology thinking about selling out. An interesting read...

Submitted by anonymous (not verified) on Tue, 24/01/06 - 4:15 PM Permalink

  • 1. Anonymous Coward - Thursday, February 02, 2006 - 12:49:17 PM
    no wonder they are financial trouble, with decision like that, buy aa studio, am sure for good money, only to close it down later. genious