No official statement released yet, but sadly it's true. Midway is shutting down Rat Bag Games after only having bought out the studio four months ago for $7 million. Founded as Emergent Software in 1993, Ratbag Games released the widely acclaimed post apolcalyptic racer called "Powerslide" in 1998. In recent years, it had established a niche for dirt track racing games on the PC and Playstation 2. The closing down of South Australia's largest game developer has to be a serious blow to the local industry and the 70 or so people that the studio employed...
"I'm getting word this morning that Midway shut down there recently acquired Australian studio, formerly known as Ratbag Holdings. A person who says they worked at the studio says the axe was dropped today.
He adds that Midway's Senior Vice President of Worldwide Studios made a personal appearance to read a prepared speech to the stunned staff of more than 50 (including one guy who had just moved to Oz from the UK that week for the job.)
Nice Christmas present Midway.
What's strange is that Midway just bought the studio, known for its racing games, for $6 million in stock this August. Weird timing."