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Bally then consolidated its pinball division with Midway in 1982, which was renamed Bally/Midway. The company scored its first mainstream hit with the U.S. In 1973, Midway moved into the interactive entertainment industry, developing and publishing arcade video games.

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The company was then purchased by Bally Manufacturing in 1969. The company was founded as Midway Manufacturing in 1958, as an amusement game manufacturer. Midway also acquired the rights to video games that were originally developed by Williams Electronics and Atari Games, such as Defender, Joust, Robotron: 2084, Gauntlet, and the Rush series. Midway's franchises included Mortal Kombat, Rampage, Spy Hunter, NBA Jam, Cruis'n, and NFL Blitz. Midway Games Inc., known previously as Midway Manufacturing and Bally Midway, and commonly known as simply Midway, was an American video game developer and publisher.

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