THQ pins Jakks in WWE license fight

Publisher declares victory in binding arbitration settlement with toy maker, as new rate on wrestling game sales reduced to 6%, a $23 million savings.

For more than three years, THQ and Jakks Pacific have been wrangling with one another over return rates related to their joint venture to make games based on the World Wrestling Entertainment license. Having entered into their joint venture in 1999, THQ initially paid Jakks Pacific a 10 percent cut of net sales associated with its WWE wrestling games. However, that rate reset in July 2006, and the two companies have since been in disagreement over THQ's new payment amount.

Tap, tap, tap.

Today, that conflict reached a resolution, with THQ declaring victory. After a prolonged binding arbitration hearing that was itself a point of contention, an arbitrator has set the new rate at 6 percent of WWE game sales, 40 percent below its previous level. The rate applies to all payments scheduled between July 1, 2006 and December 31, 2009, when THQ and Jakks' rights to make games based on the WWE license is currently set to expire.

"As we expected, we have prevailed in this matter," said James M. Kennedy, THQ's executive VP of business and legal affairs, in a statement. "We are gratified the arbitrator agreed the preferred return rate to Jakks Pacific on WWE video games will be significantly lower."

With the new return rate set at 6 percent, THQ will pay Jakks Pacific $34 million for the period between July 1, 2006 and March 31, 2009. THQ notes that this figure is $23 million less than what it would have owed the toy company had the rate not been settled in its favor.

THQ and Jakks Pacific's arbitration settlement brings to a close yet one more chapter in a litigious history between the two companies and the WWE. The WWE has sued the THQ-Jakks joint venture twice in a bid to have its licensing agreement terminated. Earlier this month, THQ sued Jakks over the toy maker's decision to unilaterally renew the two companies' joint venture through December 31, 2014.

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Discussion

35 comments
touchdownbundy
touchdownbundy

@ iSaTaNx coolest idea ever ! wwe smackdown vs. raw is a 100% arcade game. but i want a simulation ! and i bet iam not the only one.

iSaTaNx
iSaTaNx

Lets put it like this to settle it all. Why dont you guys just share the game? Like NBA,MLB,and NHL, that would make things much better wouldnt it? For an example: NBA has developers such as 2K Sports, and EA Sports. Why dont they do it like that.. it doesnt have to be 2K and EA to unite. THQ,Yukes,Jakks, and all of them whatever can make their own WWE game franchise and release it around the same time.

Dejay11chris
Dejay11chris

Ever since WWE went TV-PG everything, including the games have gotten worse.

guitarhero92
guitarhero92

i hope we don't get the same game we've been fed for the last 5 years

Boothy316
Boothy316

I think that WWE games need a complete overhaul. Every year they seem to take one stop forward, a step or two sideways, and more than a couple backward! BAH!

adam112
adam112

I hope they put the gm mode back because when they took it out of svr 09 the game was boring.

m3t9m
m3t9m

i think that THQ should stop making wrestling games and quit cus they are making it lamer

KingZero52
KingZero52

wwe should get the aki corp to make their games

CeZar_87
CeZar_87

I just don't understand how games like WWF Warzone & WWF No Mercy are better then the newer ones... I mean Why can I walk from the ring to outside in a PS2 wrestling game like WWE Here comes the pain, and can't on a system that is supposed to be so much stronger? Why can I edit wrestlers in WWE RAW 2 for the XBOX, but can't on a gen after that? Why can I make CAWS titantrons on WWE RAW 2 for the XBOX, but can't on these newer ones. I've always hated the SVR franchise because it's always been lacking. Not saying the other ones were better, but they had things that would make these newer ones so much better. The N64 wrestling games were the best.

BigTymez1
BigTymez1

the WWE games should be given to EA seeing the success of UFC and Fight Night, i mean the latest wwe games were pretty wack and boring and have the gayest story lines. EA would probably fix these games. Plus why haven't we heard anything about this game yet. No videos or anything. '09 might have sucked but at least we saw previews in march, this game is late...

Quinzark
Quinzark

the more they argue the lamer the games get. the next one better be decent.

Keitha313
Keitha313

THQ aint good..... I mean if they do something like this for the next UFC game i swear i am going to kill well not really but i can just imagine it like mini games where you can choose to smacktalk and or/not get a special advantage through doing this okay im gunna shut up before they decide to implement that idea.

snarple_basic
snarple_basic

I would also like to see THQ change there Smackdown formular a little bit. Its been mostly the same since the PS2 games. I'm not sure if another developer would do much better, it would be taking a chance. Over the years I have seen EA and Midway make sub par wrestling games, THQ's games are heads and shoulders above those. I think THQ needs to just get a little more original.

mariokart64fan
mariokart64fan

they need more areas then just backstage ,, also more freedom , ,

SVR2006MASTER
SVR2006MASTER

WWE should get a differnet License for their games

DHH34
DHH34

why can't they just focus on the gosh darn game! it's all about the money, isn't it!? what a shame.

stncldrwg
stncldrwg

WWE video games need a fresh start period. They really need to leave THQ all together, as they haven't made a good wrestling game since No Mercy.

stncldrwg
stncldrwg

[This message was deleted at the request of the original poster]

Chrysus
Chrysus

I think that the WWE liscence needs to change hands. THQ has done a very job in its time but the game to me feels asthough it is lacking satisfactionary progression. Give it to somebody else and let them bring us a new take on the spectacle

DeltaSpirit
DeltaSpirit

THQ, Yuke's really needs to start working on improving the Smackdown! especially since It's the only (current) wrestling game they make and they can make a good game (UFC) they just don't seem to put much effort into Smackdown!

wwe4ever_in05
wwe4ever_in05

Panic Jester is right about the Backstage areas I think that is what Everyone wants, and plus, I think if that can't happen then there is alway one other thing. DOR 3.

Panic_Jester
Panic_Jester

it would be nice if they added a lil more to the backstage areas. i loved how on the no mercy game you could start the match in the ring and then drag your opponent through several back stage areas.

gamer082009
gamer082009

It would be in WWE's best interest and brand to let other developers license them. I mean, THQ has been doing the same thing year after year. But I will say, I don't know how far you can go with revolutionizing wrestling being played on a console.

Burning-Sludge
Burning-Sludge

Maybe the wrestling games will start getting better every year instead of worse.

simonsworld
simonsworld

yea decent games please, and for gods sake a 2 player carrer mode! i wont give up chasing this!!! (yes am aware of online, but i have more than one game pad, nice to have a chance to play a 2 player carrer mode, with wrestling fan friends, anyone remember smackdown 2! and anything before it pretty much)

Mj-Healy
Mj-Healy

There are still no details on '10 yet. I hoped that someone else got the WWE license so that they can break the mold that THQ keeps up with the games.

sun_rider95
sun_rider95

Can't believe that I will have to go to my friend to play this game

MissMorphine
MissMorphine

glad to hear this came to an end. now i hope the focus on making some significative improvements over SvR09 and not just a roster update.

kungfuj0
kungfuj0

People please.... At least the rehashes of Madden are generally playable every year. Smackdown has ALWAYS been a piece of **** IMO, regardless of what year it was. It is truly sad that I have to dig out my old N64 to play a decent wrestling game in this day and age.

buffdaddy69
buffdaddy69

Think THQ will actually create a wrestling game this year? Or just a rehash like EA does with Madden?

bgres077
bgres077

Let's get back to the games baby!

tremor33
tremor33

Psh. Good for THQ, now how about pumping out some decent games for a change. I used to play Wrestlemania 2000 and No Mercy until my thumbs bled, but Smackdown vs. Raw was a total let-down in terms of a franchise. Go back to Wrestlemania 2000/ No mercy style game play, but with updated graphics and music. Honestly that was the only thing I didn't like about the N64 games: the crappy music. But what do you expect when the game is on a cartridge. If you're still not content with retrograding a franchise, put the game out on XBL or PSN with better graphics, sound, and online support. Guaranteed $$$$$

MadGamer132
MadGamer132

Lesson learned, just make games and make the WWE happy okay.

Berserkerz
Berserkerz

[This message was deleted at the request of a moderator or administrator]