The company, which handles Unreal Tournament and Stranglehold, also saw its revenue fall by 26 per cent to $23.4 million.
Notably activity during the quarter included the release of NBA Ballers: Chosen One for Xbox 360 worldwide and for PS3 in North America, and Unreal Tournament III for Xbox 360 in Europe.
For the third quarter, Midway execs have forecast a loss of 37 cents a share on sales of $52 million.
The upcoming quarter will also see Midway release Unreal Tournament III for Xbox 360 in North America and TNA iMPACT! for Xbox 360, PS3, PS2, and Wii worldwide.