Midway have signed a multi-year licensing agreement with Epic Games to use its Unreal Engine 3 technology and tools for next generation console and PC game development. The engine and tools have already been passed to Midway's internal studios including: Midway's Chicago (NBA Ballers and the Mortal Kombat franchise), Midway's Austin studio (Area 51) and Surreal Software (The Suffering).

This agreement is meant to help Midway align itself with the top development technology and talent in the industry and show that it is commited to the PC games market. It is also seen by the company as being instrumental in the development and progression of major franchises as well as the creation of new game properties.

"Great next generation games will be defined by how far they push the envelope in terms of graphical prowess, evolved artificial intelligence and revolutionary online functionality beyond what gamers are currently experiencing," said David F. Zucker, president and chief executive officer of Midway. "Our obtaining the use of Unreal Engine 3 empowers us to begin today to produce great next generation content. Our internal studios are already in the process of creating incredible products with the Unreal Engine 3 technology in multiple genres."

"This relationship with Epic is key in our continued efforts to build Midway into a world class development organization," said Matt Booty, senior vice president of product development, Midway. "We want all of our studios to focus on creating great content and not on creating multiple technologies from scratch. The Unreal Engine 3 technology is a critical step towards this goal and combined with our own internal systems and additions, will allow Midway to maintain its leadership in quality development as we head into the next generation."