Midway's franchises included Mortal Kombat, Rampage, Spy Hunter, NBA Jam, Cruis'n and NFL Blitz.

In 1973, Midway moved into the interactive entertainment industry, developing and publishing arcade video games.

[5] However it experienced large annual net losses and engaged in a series of stock and debt offerings and other financings and borrowings.

Sumner Redstone, the head of Viacom and CBS Corporation, increased his stake in Midway from about 15% in 1998 to about 87% by the end of 2007.

[6] In December 2008, Redstone sold all his stock and $70 million of Midway debt to Mark Thomas, a private investor, for $100,000.

[9][10] The U.S. District Court in Chicago dismissed a lawsuit alleging that former officers of Midway misled shareholders while selling their own stock.

[11] In 2010, the bankruptcy court dismissed claims against Redstone concerning his sale of the company to Thomas and approved Midway's plan of liquidation.

Meanwhile, Midway's breakthrough success came in 1978, with the licensing and distribution of Taito's seminal arcade game Space Invaders in America.

In 1983, Bally Midway acquired arcade manufacturing assets of Sega Electronics from Gulf and Western Industries, and through the purchase also gained distribution rights to arcade games developed by Sega Enterprises, Ltd. in the United States for two years which included titles such as Astron Belt, Flicky, Future Spy, and Up 'N Down.

Over several years, Midway gradually terminated all material agreements and executive overlap with WMS and had a declining number of common members of its board of directors, until it shared only one with its former parent company.

Mindshadow alleged that Midway copied Psi-Ops's story from a screenplay written and owned by their client.

[32] On March 6, 2007, Midway reported that it had entered into a new $90 m credit agreement with National Amusements, a company controlled by Sumner Redstone.

[27] Midway's CEO, David Zucker, stated that the introduction of Unreal Tournament 3, and the company's growing success in mass-market games, were setting it up for a "significant 2008".

[34] During the summer of 2008, in an effort to trim costs, Midway closed its Los Angeles and Austin studios.

[35] These closures left Midway with four studios, in Chicago, Seattle, San Diego and Newcastle, England.

In November 2008, Midway reported that its cash and other resources "may not be adequate to fund... working capital requirements" and that it "would need to initiate cost cutting measures or seek additional liquidity sources".

[37] The next day, Midway received a NYSE delisting notice, after its stock's price fell below one dollar.

On December 2, 2008, Sumner Redstone sold his 87 percent stake in Midway Games to Mark Thomas, a private investor, through his company MT Acquisition Holdings LLC.

[35] A company spokesperson said, "We felt this was a logical next step for our organization, considering the change in control triggered the acceleration of the repayment options ... we're looking to reorganize and to come out on the other side stronger.

"[39] Midway announced on May 21, 2009, that it had received a takeover bid from Warner Bros. Interactive Entertainment (now Warner Bros. Games), valued at more than $33 million, to acquire most of the company's assets, including Midway's Chicago and Seattle studios and rights to the Mortal Kombat and Wheelman series.

The offer did not include the San Diego and Newcastle studios or the TNA video game series.

[42][43] Midway had previously worked with Warner Bros. on several games including Mortal Kombat vs. DC Universe.

The total gross purchase price for the sale was approximately $49 million, including receivables, and Warner Bros. assumed liabilities.

The sale also triggered payments under Midway's Key Employee Incentive Plan of approximately $2.4 million to company executives.

[54] In October 2009, the U.S. District Court in Chicago dismissed a lawsuit against former officers of Midway alleging that they had misled shareholders while selling their own stock.

The judge ruled that Midway's shareholders had not shown that the executives "said or did anything more than publicly adopt a hopeful posture that its strategic plans would pay off".

The defendants oversaw the ruin of a once highly successful company, only to hide behind the protective skirt of Delaware law, which the court is bound to apply."

[13] The creditors' settlement of their lawsuit against National Amusements, in the total amount of $1 million, was approved by the bankruptcy court on June 21, 2010, ending the outstanding claims against the Redstone family.