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View Full Version : Midway shuts down Ratbag Games


faultline
12-14-2005, 08:46 PM
"The Adelaide based games developer formerly known as Ratbag will be closed down by its Chicago based owners just five months after it was bought for more than $7million."

LINK: (http://www.news.com.au/story/0,10117,17574749-1246,00.html)


That sucks.. I remember how groundbreaking Powerslide was back in the day. Was at least a year or two before other game engines looked as good. Hope all the employees find great jobs elsewhere.

erilaz
12-14-2005, 09:22 PM
Holy crap! We don't have enough developers in Australia as it is!:sad:

greenj2
12-14-2005, 10:35 PM
That sucks man, like erilaz said we don't have enough dev houses in Australia as it is. Hopefully another dev will pop up to fill their place but I won't be holding my breath. :sad:

Digit
12-14-2005, 10:41 PM
That stinks :(

Australia deserves a thriving industry with all the talent there.

Icarus
12-14-2005, 11:01 PM
that really sucks.....

ntmonkey
12-14-2005, 11:34 PM
That stinks :(

Australia deserves a thriving industry with all the talent there.

Get rid of the great white sharks, man-eating spiders, top 10 list of most poisonous snakes and I'm there. :D

peace,

Lu

Maverick3d
12-15-2005, 02:48 AM
Get rid of the great white sharks, man-eating spiders, top 10 list of most poisonous snakes and I'm there. :D

peace,

Lu

Yeah, that's my main reason for never going there. Here, anything that can kill you is bigger than you.

You're never gonna find a bull moose hiding in your shoe and once you've stared down an angry bear, death from a jellyfish is anticlimactic.

On to to Ratbag:
I've been following them since Powerslide. I bought Dirt track Racing for my nephew. They had their nieche. Too bad they fell prey to bad business.

I was looking forward to their new game, Scavenger. I need a new vehicular combat game to fill the void left by Interstate 82.

sparta
12-15-2005, 04:59 AM
This really sucks. Ratbag was a company that South Australia was really proud of - only to have it bought out and shutdown within the same year. It must suck for their 70+ employees to be sacked two weeks before christmas. Damn you Midway!!

Leonard
12-15-2005, 05:32 AM
What I don't understand is exactly why it closed down only months after it got bought out.

It's amazing, isn't it?

Leo

Eyemaze
12-15-2005, 04:51 PM
What I don't understand is exactly why it closed down only months after it got bought out.

It's amazing, isn't it?

Leo

More than likely they wanted to get control of IP, licensing rights, key talent or intangibles that the smaller company held.

jason manley
12-15-2005, 07:20 PM
7 mil is a bargain for a game company of that size. it is tough to see hard decisions made close to the holidays.

jm

unchikun
12-16-2005, 12:15 AM
Midway has been losing money since 2000. In recent years they have tried to consolidate and branch out operations at the same time.

Bottom line is that they need to produce at least one hit title. Mortal Kombat and Defender doesn't quite cut it these days.

I'm sure the original owners of Ratbag got decent compensation although a bit upset at the closure. Would be interested in a postmortem.

rstratton
12-16-2005, 03:16 PM
I don't know if we are at liberty to say but it wasn't completely Midways fault....and I am not just saying this because I work for them, hell I have a good friend at Ratbag who agrees with that...

richcz3
12-16-2005, 09:22 PM
More than likely they wanted to get control of IP, licensing rights, key talent or intangibles that the smaller company held.
I would believe this was more a PLAN B than PLAN A.

Seven months ago there was probably the need to shift development outside their main operations. Maybe on paper Ratbag was running a tight ship or their debt to profit margins looked better (at the time). If Midway has since hit a financial projections iceburg it would probably result in this sort of action taking place. Man the bilge pumps.

I just read on Tuesday that video game sales softened in the last quarter. Partly due to the anticipation of next gen consoles.

harshdesign
12-22-2005, 08:09 AM
Midway has been losing money since 2000. In recent years they have tried to consolidate and branch out operations at the same time.

If Ratbag already knew midway ship was sinking...then why did they sold it out to them...that too complete rights??? I feel sad for ratbaggers tho as this news came on the festival season...but m sure they will find a good place :)

also someone said about giant spiders and snakes...is it ture??? :sad::sad::argh:

richcz3
12-22-2005, 03:14 PM
The last quarter saw a significant decline in video game sales. This was being partly attributed to consumer anticipaion for the release of the XBox360 and eventual PS3. Couple that with the costs to develop rising accross the board, and any company with marginal performance one year ago is a bad prospect now. Expect to see allot more developers close their doors in the coming year. 2005 had plenty of them.

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