Midway Games Bankruptcy No Real Surprise

Midway Games (MWY Quote), maker of the popular Mortal Kombat series of video games, has filed for Chapter 11 bankruptcy protection, the latest sign of woe in the video game industry.

The Chicago-based game maker said that despite "strong underlying fundamentals," it filed for bankruptcy protection for its U.S. operations Thursday. Midway cited a recent change in control of the company as the key trigger.

In December, Sumner Redstone, the chairman of Viacom (VIA Quote) and National Amusements, sold an 87% controlling stake in Midway to investor Mark Thomas for $100,000, or less than a penny a share. Thomas also assumed $70 million in senior secured and unsecured debt. ...