http://www.mortalkombatonline.com/content/News/read.cds?article=6

Mortal Kombat 5 Arcade in Jeopardy: Midway to focuse solely on console gaming

Midway Games has released a press release with information that the company will be abandoning the arcade hardware market and apparently turning all of its attention on console gaming. Midway also states it has laid off approximately 60 employees from its coin-operated division. Midway will now move almost all of its coin up projects straight to home consoles. Mortal Kombat 5 originally planned for arcades could be coming straight to home consoles sooner than expected. Here is a quote from SegaDojo.com:
"Midway's possible departure from the arcades is unfortunate, but they will remain a strong presence on the home console front, as almost all arcade projects that were still in development will be moved to console platforms. Specific platforms have not been announced, but we can expect to see San Francisco Rush: Hot Rod and Mortal Kombat 5 coming to a console near you sometime in the future."

The Mortal Kombat Team has stated in the past that there was always a possibility that MK5 could skip the arcades. We will let you know if this holds true.