Gamasutra has an article chronicling how Midway's history has led up to it's current bankruptcy. The article goes back several years to describe the company's failings.
Today, Chicago-based Midway Games, which officially established as a corporation in 1988 (although its heritage goes back to the 1950s), is in the midst of a bankruptcy that began in February 2009, as pressure from creditors grew too much to bear.
But Midway's problems were mounting several years earlier. With some formerly brilliant companies, it's easy to pinpoint the exact moment where the business went sour. In Midway's case, the current situation is the result of a culmination of several salient factors.