Kotaku is reporting that the developers of Midway's Mortal Kombat franchise are currently in talks with other publishers. The roughly 50-man team is apparently looking to found its own studio with the backing of a top tier game company. Kotaku's sources say that senior members of the development team are frustrated by Midway's general business practices, the lack of production of the publisher's other titles, and their handling of the recent bankruptcy.

The final straw for the Mortal Kombat developers is reportedly the lack of paid bonuses promised to the team for meeting certain targets for Mortal Kombat vs. DC Universe. Midway, for its part, has denied any withholding of payments to the Mortal Kombat vs. DC Universe developers. "Midway is not refusing to pay out those bonuses," said a PR rep to Kotaku. "It's the unsecured creditors committee that is refusing to allow us to pay them. They're the ones holding that up."

In order to leave Midway, the Mortal Kombat team might have to leave the franchise, and their work on the series' latest entry, behind them.