Midway Games to Exit Arcade Business

Midway Games Inc., which made “Pac-Man,” “Spy Hunter” and “Gauntlet” arcade games in the 1980s, plans to cut its work force by about 60 employees, or 10%, and exit the coin-operated arcade video-game business because of declining demand.

Midway is focusing on making home video games such as “Mortal Kombat” and “NFL Blitz” for Sony Corp.’s PlayStation 2, Microsoft Corp.’s Xbox and Nintendo Co.’s Gamecube and Game Boy. Midway Games rose 15 cents to $15.85 on the NYSE.