According to an SEC filing stateside, San Diego has been saved on the precipice by a offer from rival publisher THQ. The studio was set to close following take-over of Midway.

French and German Midway subsidiaries, who also faced closure, have been placed into holding companies controlled by senior local executives; a management buy-out of sorts.

THQ are vowing to employ at least forty of the one-hundred workers at Midway San Diego, although this deal does exclude the rights to the TNA iMPACT! games developed at the studio, and the Unreal engine license held by the game maker.

Midway Newcastle, creators of Wheelman, meanwhile look to have been closed down following failed attempts to find new backers.

By Luke Guttridge