Defunct video game manufacturer THQ is suing EArch&phrase=UFC" class="Newslink">UFC parent company ZUFFA and former rival Electronic Arts, Inc. (EA) over the UFC Undisputed video game.
THQ originally developed the UFC Undisputed game, and it sold well. However, unrelated shortcomings in the company meant the game could not be developed further, and so THQ and ZUFFA entered into negotiation of ZUFFA to acquire full rights to the game, for a reported $10,000,000.
However, THQ claims that the UFC received information from rival EA abotu the poor state of THQ's finances, gleaned when EA was considering purchasing THQ. THQ claims that they were thus hamstrung in the negotation, and that the actual value of the UFC game rights was $20,000,000.
The central premise of the suit is that the UFC learned about THQ's precarious financial position from THQ, which should not have divulged the information. However, THQ's poor finances at the time were widely known.
EA developed EA Sports MMA, but was unsuccessful without the UFC's roster. EA is set to unveil a new UFC game, “EA Sports UFC” this spring.
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