Gaming news and rumor website Kotaku is reporting that the key group of developers involved with Mortal Kombat projects is possibly seeking a studio of their own, on a publisher other than Midway. From the article:

Midway's team of developers responsible for the 17-year-old Mortal Kombat franchise is currently in active talks with other publishers to leave the company and for its own studio, sources tell Kotaku.

The MK team, which comprises about 50 developers, is said to be in discussions with a handful of unnamed publishers, with senior members of the group handling negotiations for a possible exodus from Midway. According to Midway sources who wished to remain anonymous, one of the catalysts for the move is a lack of payment in bonuses due to MK team members based on meeting Mortal Kombat vs. DC Universe sales targets.

Sources said that the Mortal Kombat team has become increasingly "frustrated" with the handling of Midway's bankruptcy filing. MK staffers also expressed irritation from being in the position of delivering million unit-selling titles on time and on a bi-annual schedule while other projects at the company languish in development.

An important aspect to this revelation would be what would become of the Mortal Kombat license, and whether or not its creators would be able to take it with them to another publisher. Whatever the outcome of this situation, we will keep you posted on the latest developments in this ongoing story.

To read the article in full, click here.

Thanks to forum member for the lead on this story!