Developer Lionhead Studios didn’t comment by our deadline about i...
Developer Lionhead Studios didn’t comment by our deadline about its plans for the game The Movies. Activision executives revealed in a conference call Mon. that the publisher scrapped plans to make console versions of the title because of weak…
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consumer demand for the PC version out now (CED Feb 8 p6). Comments on Lionhead’s online message boards indicated the company remains committed to console SKUs, but a new publisher hasn’t been named. Activision, meanwhile, said in a 10-Q SEC filing late Wed. that “we expect sales of titles for the Xbox 360 to remain flat as a percentage of total net revenues dependent upon and consistent with the availability” of hardware. It also said in the filing that a hearing was scheduled that day in Cal. Superior Court (L.A.) relating to the shareholder derivative suit filed on behalf of the publisher in March 2004 against Activision CEO Robert Kotick and other company executives. The suit made the same basic charges as an earlier suit seeking class action status against Activision and certain executives, claiming the executives were guilty of securities violations including insider trading and breaches of fiduciary duty. Activision said the parties “agreed to a stipulation of settlement to be submitted to the court for preliminary approval.” The publisher said the settlement would require the dismissal and release of the alleged claims and “no cash recovery is to be paid to the plaintiff.” Activision said the settlement also includes a statement by the company that it “vigorously denies any assertion of wrongdoing or liability.” But Activision said it agreed to pay $200,000 in plaintiffs’ fees. The settlement also acknowledges that Activision “implemented certain enhancements to its corporate governance policies” after the suit was filed, it said. Activision didn’t comment by our deadline about the outcome of the court hearing. Separately, Schiffrin & Barroway became the latest firm to file a suit seeking class action status against Take-Two Interactive. Like the earlier suits (CED Feb 7 p8, Feb 6 p9, Feb 3 p9), it charged Take-Two and some officers and directors with securities violations including the failure to disclose that the controversial game Grand Theft Auto: San Andreas contained hidden sexual content mandating it be rated AO and not M. Take-Two took a significant financial hit after the Entertainment Software Rating Board (ESRB) discovered the content was included on discs of the game and required the game’s rating to be changed, causing most retailers to remove it from their shelves (CED July 22 p7, July 21 p4). The publisher didn’t comment by our deadline about the suits.