Anyone who has followed video game news over the last 10 years knows that Midway has dramatically fallen from grace.  The onetime publisher of such great games as NFL Blitz, NBA Jam, Rampage and of course Mortal Kombat, has seen exponentially diminishing returns with each console generation.  After several original IP’s such as Stranglehold and The Wheelman failed to pan out, it became apparent that the beginning of the end was upon the once storied publisher.  This became even more evident, when it was announced that Midway has posted a $191 million dollar loss over the course of 2008.

In order to prevent the inevitability of the company folding, they filed for Chapter 11 bankruptcy in February of 2009.  It was at about this time that rumors began to circulate, mentioning a potential sale of at least a portion of the company.  Those suspicions came to fruition in late May, when Warner Bros. announced their intentions to purchase the company for a mere $33 million dollars. Even more unfortunate was the fact that Warner only wanted part of Midway.  This portion of the company consisted of the Mortal Kombat franchise (of course!), and two of Midway’s four development studios.

Until yesterday afternoon this had been nothing more than an idle offer, but after a brief public auction and a single judgment, this potential acquisition became very real.  On Tuesday, courts officially approved the Warner Bros. purchase of Midway, stating that the official date of transfer will be determined within the next ten days.

Unfortunately, this leaves two studios that had once been under the wing of Midway, in limbo.  Reps for the company have said that both teams have been given sixty days notice.  If they are not purchased by another publisher within this time frame, they will be forced to close up shop for good.  It looks as though they too may become casualties of the declining economy.

Once all of the dust has settled, only one real question remains: Who will be developing the next Mortal Kombat?