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roadkillers on 26 March 2007

Ok I have a question with them. There one of my favorite company's but they have been losing money for the past what 3-5 years. My question is what happens if they keep losing money? How do they keep losing money? They have games that sell in the millions (Blitz and Mortal Kombat). How do they always keep losing money? Also what would happen to all of there big games? They have a large amount of games they make.



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Arcturus on 27 March 2007

roadkillers said: How do they keep losing money?
If you take a look at Midway's income statements for the past three years, their cost of revenue averages almost 80% of total revenue. When looking at similar companies like Activision, EA, and Take-Two, their cost of revenue ranges from 60% (Activision and EA) to 70% (Take-Two) of total revenue. Midway has to get their costs of producing games under control.