Midway to Shut Down California Group

Midway Games Inc., maker of the popular “Mortal Kombat” video game series, is shutting down internal development at its Milpitas, Calif., office, according to company sources.

The move will affect more than 80 people, over half its staff there. Some developers will move to Midway’s Chicago headquarters or its office in San Diego, but most will be laid off, sources said.

The Milpitas group had been working on “Gladiator: The Crimson Reign,” a game that was canceled to reduce costs. Midway will maintain its sales, marketing and other development staff in Milpitas.