What could have caused the sudden downfall of Midway Games? While there are certainly a lot of factors to consider, what stands out among the many possibilities is the Unreal Engine 3.

Yes, Unreal Engine 3, the technology licensed from Epic Games. The same technology that was responsible for the epic title that is Gears of War. But how could that be? It looks like the problem was not with the technology itself, but the lack of know-how on the part of the Midway team to fully utilize it to its full potential.

Former staffers are now saying that their problems started to brew when Midway decided to license Unreal Engine to use it for all of its games. Expressed an ex-employee (under anonymity), "It was a ton of new technology which they just weren't capable of doing. It put all the games way behind schedule."

And when those delayed games were finally released, they turned out crappy and harshly received by critics. Trying to catch up with the lost revenue, they then resorted to drastic measures of pushing out poorly-made games, which, as we all know, is never the right answer.

Need examples?

Blacksite was a game that clearly wasn't ready. Everyone was like, 'Push it to Q1,' but Stranglehold had bombed and we needed another game out the door; we needed revenue.

So is there ever a silver lining for Midway amidst all this mess? For one, there's Mortal Kombat vs. DC Universe (Xbox 360, PlayStation 3) to look forward to, but that will only give them a short breather.

Chief Marketing Officer Steve Allison would like to believe that there is a future to look forward to:

Midway has some great IP hidden in the vault. Rampage quietly did a million units on Wii and PS2 a few years back. Mortal Kombat is a great IP that has survived the decline of the fighting genre. Then there's Gauntlet, Rush, Blitz and many others than could be reborn in the right hands. If Fallout can make the incredible transformation it has in the hands of Bethesda, then the right team with the right vision can make something from the history there.

Good luck, Midway. You're sure gonna need it. Too bad Michael Pachter's summer forecast that 2008 is gonna be a better year for Midway didn't turn out the way he thought he would.

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Related Midway Games troubles Article:

• More layoffs for MIdway
• Midway posts big Q1 losses, three top execs resign
• Pachter: 2008 is going to be better for Midway