No big surprise here. Midway Games (NYSE:MWY) reported earnings for the second quarter, and they weren't good.

Net sales revenues declined 30% to $25.9 million. There was a gross loss of $1.4 million, compared to a gross profit of $1.9 million in the year-ago period. The operating loss expanded 5% to $30.3 million, while the net loss increased 4% to $31 million, or $0.34 per diluted share.

The six-month statistics aren't any better. Net sales revenues plunged 19% to $41.3 million. The gross loss was $0.7 million, versus a gross profit of more than $7 million. The operating loss increased 18% to $52.1 million. The net loss came in at $53.6 million, or $0.59 per diluted share, which represented a widening of roughly 17%.

This is pretty much par for the course, sad to say. Midway just isn't in the league of an Electronic Arts (NASDAQ:ERTS), a THQ (NASDAQ:THQI), or even a Take-Two Interactive (NASDAQ:TTWO). Unfortunately, it is in the league of Atari (NASDAQ:ATAR), although its share price isn't as down-and-out as that legendary video-game brand. Midway's buoyancy may owe entirely to Sumner Redstone's many purchases of its stubs; he owns nearly 90% of the entire concern. The Viacom (NYSE:VIA) mogul apparently loves the company, as do traders who follow his lead.

As I've stated before, however, I just don't see Redstone's interest as enough of a reason to buy into the publisher. Besides the GAAP losses, the lack of cash flow is most disheartening; it doesn't spell long-term Foolish value. Neither does Midway's slate of games. Although the company does have its fair share of licensed products -- such as cartoon properties from Time Warner's Cartoon Network and the recent animated project The Ant Bully -- it can't seem to leverage them to create value. In addition, other major publishers have licenses with arguably greater marquee value, such as THQ and its Nickelodeon and Disney/Pixar titles.

If you want to trade Midway based on Redstone's purchases, best of luck to you. The better option would be to check out EA or THQ. It's funny, because I own a Midway collection for the Nintendo Gamecube that I absolutely love; I mean, who isn't up for a couple waves of Defender, or a few sessions of city-destroying with Rampage? It's too bad I can't say the same thing for Midway as a potential investment idea.

More Takes on Midway and its competition:

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Fool contributor Steven Mallas owns shares of Disney. The Fool has a disclosure policy.