THQ has defeated Jakks Pacific
for the Intercontinental Championship in an arbitration case regarding royalties for the former's WWE video games. As TheFeed's Jake Gaskill reported at the beginning of the month, the two companies have been unhappy with its joint-venture arrangement, squabbling like a tag team that's about to break up. According to Reuters:
"Jakks Pacific Inc said an arbitrator determined that the toymaker is entitled to only a 6 percent preferred return payment rate from World Wrestling Entertainment Inc video games sold by its joint venture, rather than the 10 percent rate sought by Jakks.
The binding arbitration will result in Jakks' JV partner THQ Inc having to pay it only about $34 million on account of the preferred return for the period from July 1, 2006 through March 31, 2009, Jakks said."
While the reduced royalty payout to Jakks is good news for THQ, the better news for gamers is that WWE games, like SmackDown vs. RAW
, will continue to be served up on a consistent basis. It will be interesting to see how the partnership plays out; it made sense at the time, but THQ seems to have outgrown Jakks.
WWE question of the day: what do you think The Rock was cooking?