Midway plans new studio in Austin, Texas

Publisher Midway has issued a brief statement announcing its intent to open a new development studio in Austin, Texas, only days after former local employer Acclaim was declared bankrupt.

Details of the new Midway studio have not yet been revealed, with the firm simply saying that the studio - which will be Midway's fourth internal development location - will open "in the near future."

Austin has a large concentration of game development talent, but will be hard-hit by the closure of Acclaim's facility in the area. Local developers are hoping that the opening of the Midway studio will help to cushion the blow for many of the former Acclaim staff.

Midway is due to make an appearance at the Austin Game Conference event later this week, with the firm presumably intending to discuss its plans for the new studio and speak to potential hires at the conference.

Earlier this year, Viacom chairman Sumner Redstone increased his holding in Midway to around 80 per cent, giving him a significant majority stake in the firm, and speculation continues to mount that the publisher could be purchased by the Viacom media empire in order to give it a foot in the door of the games industry.