Video game publisher Midway Games lowered its projected third-quarter revenue estimates due to delays in the release of upcoming video games, as well as lower-than-expected sales of its latest game, BlackSite: Area 51.
The company is now expecting $39 million in revenue with a net loss of 33 cents a share for the third quarter. Midway had previously forecast $50 million in revenue with a net loss of 23 cents a share. The dismal new forecast is significantly lower than analysts' expectations of $51.7 million.
The shortfall in earnings can be primarily attributed to the company's decision to release the awaited games Stranglehold, which it will now debut the fourth quarter, and Unreal Tournament 3, slated to release in the first quarter of fiscal 2008. The weak sales of BlackSite: Area 51 are attributed to an adverse impact of the split shipment between Xbox 360 and PS3 consoles.
Midway is currently trading at $4.14, down 1.6%.