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Midway Sheds Coin-Op Videogame Biz, Plans Layoffs

Midway Games Inc. has announced that as a result of decreasing demand in the coin-operated arcade videogame market, it is getting out of that business. The company is now focusing its game development efforts exclusively on games for next-generation home videogame platforms, including the PlayStation 2, Xbox, Nintendo GameCube and Game Boy Advance. The move is expected to mean a layoff of fewer than 60 people, and a primarily non-cash pretax charge of less than $8 million in the quarter ending June 30, 2001. The company had previously announced their plan to focus product development resources on next-generation home videogame consoles, and is expecting to generate significant revenue and profit growth in fiscal 2002, which commences January 1, 2002.