Halo co-creator Alex Seropian has joined Disney Interactive Studios as "vice president of creative," a new role that will see the outspoken industry veteran "overseeing creative development across Disney Interactive Studios' portfolio of video games."

In addition, Disney will acquire Chicago-based Stubbs the Zombie and Hail to the Chimp developer Wideload Games, which Seropian formed after leaving Halo developer Bungie. Prior to joining Disney, Seropian had been serving as CEO of Wideload.

"At Wideload, we've conscientiously built a forward-looking approach to game development that borrows many techniques from the film industry. Now, Wideload will be a part of one of the largest, most respected entertainment companies... Read more

Bethesda Softworks parent company ZeniMax Media has just announced its acquisition of well-known video game developer id Software (Doom, Quake, Wolfenstein 3D).

"id Software will continue to operate as a studio under the direction of its founder, John Carmack," vowed ZeniMax. "No changes will be made in the operations of id Software in the development of its games. All the principals at id Software have signed long-term employment contracts, assuring they will continue in their roles...at the studio."

Founded as an independent game developer in 1991, id Software is currently working on the post-apocalyptic shooter RAGE (PC, PS3, 360) and the long-awaited Doom 4.

"Our intention is to make sure id Software will continue to do what they do best--make AAA games," said ZeniMax CEO Robert Altman. "Our role will be to provide publisher support through Bethesda Softworks and give id Software the resources it... Read more

Rise of Nations developer Big Huge Games has been saved from closure by baseball star Curt Schilling's company 38 Studios to bolster its original property Copernicus.

The acquisition includes all of Big Huge's tools, technology, assets, properties and works-in-progress--several of which were revealed by media leaked in April.

"BHG's cross-platform RTS/RPG engine will accelerate the realization of our Online Entertainment Experience for the Copernicus IP," said 38 Studios CEO Brett Close.

38's Copernicus is an original fantasy property designed with contributions from Spawn creator Todd McFarlane and fantasy author R. A. Salvatore, intended to be realised in many forms and crowned by an MMO built on the Unreal 3 engine... Read more

Media conglomerate Time Warner has made a $33 million offer, via its Warner Bros. Entertainment subsidiary, to purchase assets from bankrupt publisher Midway.

The proposal sees Warner attempting to purchase "substantially all of [Midway's] U.S. assets," including the Mortal Kombat franchise plus development studios in Seattle and Chicago. However, Midway was clear that the Warner offer does not include the TNA franchise, the Midway San Diego studio and Wheelman developer Midway Newcastle.

The two companies are now in a "stalking horse" agreement, with a "court-supervised auction process...intended to achieve the highest value possible for [Midway's] stakeholders" set to occur before the court can approve or deny the Warner bid.

With Square Enix's $120 million purchase of Eidos now complete, lifetime sales figures of their major franchises have been revealed.

The information was provided as part of Square Enix's "Corporate Strategy Meeting," during which the company discussed "synergies" and presented materials on the "Eidos Integration."

Square Enix
• Final Fantasy franchise > 85 million units
• Dragon Quest franchise > 47 million units
• Kingdom Hearts franchise > 12 million units
Eidos
• Tomb Raider franchise > 30 million units
• Hitman franchise > 8 million units

Details on the sales of other Eidos-owned franchises, including Kane & Lynch (around 1.75 million units) and Deus Ex (over 2 million units), were also provided in bar graph form, along with individual figures for the various iterations of Hitman and Tomb Raider.

Casual games developer and publisher PopCap Games today announced its acquisition of Xbox Live Arcade developer Gastronaut Studios, which has previously worked with PopCap in bringing Feeding Frenzy 2 and Peggle to the Xbox 360.

Gastronaut is now working on several "undisclosed projects," with its founders retaining their rights to the studio's original properties, such as the Xbox Live Arcade side-scrolling combat game Small Arms and the upcoming puzzle game Gel.

Financial terms of the acquisition were not provided.

"We've enjoyed a fantastic working relationship with PopCap on their XBLA titles and we're thrilled to be joining their team to create exciting titles that players of all stripes will love." said Gastronaut co-founder Jacob Van Wingen.

Confirming recent rumors, Japanese publisher and Final Fantasy series developer Square Enix today made an offer to buy Eidos for 84.3 million pounds, or $120 million.

The overall company, which recently changed its name from SCi to that of its well-known publisher subsidiary Eidos, has long been the subject of frequent takeover rumors due to ever-worsening financial conditions. It owners numerous development studios and properties, including Tomb Raider, Deus Ex, Carmageddon, Hitman, and Kane & Lynch.

"Eidos' products are highly complementary to our business and will accelerate our aggressive expansion into Western markets," said Square Enix president Yoichi Wada.

Before moving forward, Eidos will need a majority of its shareholders to approve of the acquisition, with a meeting scheduled for March. Square noted that all of Eidos' directors "intend unanimously to recommend" that shareholders take the offer.

According to Square, its offer represents a 129% premium over the worth of Eidos' stock, as of yesterday, February 11, 2009.

Warner Bros. Interactive Entertainment has announced it is acquiring Snowblind Studios, the Seattle-based developer behind such games as Baldur's Gate: Dark Alliance, Champions of Norrath and Justice League Heroes.

Snowblind Studios becomes the third studio under the Warner Bros. Interactive Entertainment umbrella, joining F.E.A.R.2 developer Monolith and LEGO game creator TT Games.

"We look forward to working as a part of Warner Bros. Interactive Entertainment on creating several distinctive games with wide appeal," said Snowblind Studios head Ryan Geithman. "Our team is committed at every level to making the best gaming experience possible for our audiences."

Snowblind's current project is the Xbox Live Arcade action game Death Tank.

Update: Crytek today confirmed last night's news, announcing it indeed purchasing the assets and business of Free Radical Design. The forty-some people still left at the company following December's layoffs and bankruptcy will be retained. The studio will now be known as Crytek UK.

Original: Though an official announcement on the fate of TimeSplitters developer Free Radical isn't due until tomorrow, staffer Rob Yescombe has already spilled the beans.

Crysis developer Crytek is now the proud owner of the bankrupt development studio, Yescombe, a script writer, told 1UP. "It's the smoothest deal we've ever done. It all went through quickly, efficiently, fantastically," he said.

At present, it's unclear if Crytek will enable Free Radical to regain some of the 140 employees it lost last December, or if work will continue on TimeSplitters 4.

Japanese publisher Square Enix has reportedly expressed interest in purchasing ailing British publisher Eidos, according to MCV and its anonymous source.

Square, which recently noted its intent to expand in the European and North American markets, joins the three other long-rumored suitors: Electronic Arts, Ubisoft and Warner Bros. Of the four, Warner Bros has an advantage as it already owns 20% of Eidos.

The company, which recently changed its name from SCi to that of well-known subsidiary Eidos, has long been the subject of frequent takeover rumors. Its properties include Tomb Raider, Deus Ex, Carmageddon, Hitman, and Kane & Lynch.

Across the past year, Eidos has lost $177 million and its stock has dropped by 90%, making the company an even bigger acquisition target than it was when talks began last year. Eidos later rejected a buyout offer in April 2008 from an unknown suitor.

Tecmo, publisher of the Ninja Gaiden and Dead or Alive series, has successfully negotiated a merger with fellow Japanese publisher Koei, and the two will join forces to form Tecmo Koei Holdings, which goes into effect on April 1, 2009.

Koei, the larger company, will hold three quarters of the newly combined publisher, according to Reuters. 20 billion yen ($207 million) in stock will be infused into the holding company at its launch.

Tecmo Koei has put forth a business plan aiming for a profit of 16 billion yen ($164 million) in its fiscal year 2011. Last year, the two added up to a combined profit of 8.5 billion yen ($87 million) each company's fiscal year 2007.

The move was actually started by Japanese publishing giant Square Enix, which made a "friendly" buyout offer to Tecmo in August after the publisher hit a rough patch between employee lawsuits and the departures of president Yoshimi Yasudami and famed designer Tomonobu Itagaki.

Tecmo, to the surprise of many, rejected Square's offer and instead entered talks with the Dynasty Warriors publisher. Koei also found itself in difficult times as the company struggled to transition out of developing PlayStation 2 games.

MMO technology creator and CyberSports contractor Monumental Games announced today that it has acquired half of 50 Cent: Blood on the Sand developer Swordfish Studios from Activision, marking the second ex-Vivendi studio to be sold off this week.

The studio was one of the many that Activision Blizzard hoped to sell after the Vivendi Games merger, with Swordfish's 50 Cent game among those dropped from the company's publishing slate as it did not fit with Activision's sequel-centric plans.

Monumental picked up Swordfish's 26-person Manchester branch for an undisclosed sum. The fate of the Birmingham office is not yet known, though publisher THQ has signed on to release 50 Cent: Blood on the Sand early next year.

"The Swordfish team is one of the very few developers worldwide to have fully solved the hugely complex issues involved in running and managing the XLSP (Xbox Live! Server Platform) server environments for online console gaming," explained Monumental CEO Rik Alexander.

"This knowledge base will help to consolidate Monumental's position as the market leading online game developer."

Online retailer Amazon.com has acquired casual game developer and distributor Reflexive Entertainment, and will apparently expand its offerings to include digital distribution of PC games.

In addition to supplying casual titles via its GameCenterSolution program, the studio is also responsible for the downloadable Xbox 360 launch title Wik & The Fable of Souls, along with PC titles Lionheart: Legacy of the Crusade and Ricochet.

Brubaker's revelation of the acquisition suggests that the Reflexive's digital distribution experience was a key factor. "We'll be able to expand our distribution network to include Amazon's amazing distribution channel," he noted in a blog post

The move will bring "a huge new group of customers into play," the CEO claimed, with the company pledging its intent to "provide the best distribution platform anywhere, and to continue working openly with all the participants of the casual games space."

Publisher SouthPeak Interactive paid nothing up front for the privilege of swallowing Gamecock, the independent-oriented publishing house started by gaming entrepreneur Mike Wilson (pictured at left).

The Cut Scene, looking at a recent SEC filing by SouthPeak, found that the publisher is making two payouts: a 7% royalty on future Gamecock releases (with the rest of revenues going to SouthPeak) and "a warrant to purchase 700,000 shares of SouthPeak stock."

In essence, SouthPeak got a great deal for the independent publisher of Red Fly's Mushroom Men (Wii, DS) and Spark Unlimited's Legendary (PC, 360, PS3). Gamecock's ownership, on the other hand, got a stake in a rather small publisher.

SouthPeak has committed to publishing the two aforementioned Gamecock titles as well as Replay Studios' Velvet Assassin (PC, 360) next year, but after that the future of the Gamecock brand and the role of CEO Mike Wilson--who once before sold off an independent-oriented publisher he helped found--is unknown.

Publisher SouthPeak Interactive today announced that it has acquired independent game publisher Gamecock Media Group for an undisclosed sum.

Gamecock will retain its focus on independent games, according to comments from each company's CEO. It marks Gamecock CEO Mike Wilson's second sell-off of an independent-oriented game publisher he helped create, the first being Gathering of Developers, which was sold to Take-Two in 2000.

SouthPeak CEO Melanie Mroz stated that the acquisition "supports our strategy of working with independent developers" and gives "Gamecock titles a bigger platform to succeed."

Gamecock's holiday lineup, which includes Red Fly's Mushroom Men: The Spore Wars (Wii) and Mushroom Men: Rise of the Fungi (DS) and Spark Unlimited's Legendary (PC, PS3, 360), appears to be unchanged, with SouthPeak claiming they are still expected to ship this quarter, followed by Replay Studios'Velvet Assassin (PC, 360) next year.

"We are thrilled to be joining forces with SouthPeak to continue to bring great original titles from independent developers to market with a stronger sales and distribution reach," explained Gamecock CEO Wilson. "We have followed each other's progress closely over the last two years, and combining our team with theirs results in a very strong and well-rounded force in the market."

After conducting a review of strategic alternatives and discussing possible business arrangements with companies such as EA, Grand Theft Auto and BioShock publisher Take-Two Interactive Software has concluded that it will remain independent.

"Our strong cash position--with no debt and an undrawn $140 million credit facility--gives us the financial flexibility to continue to do what we do best: innovate and create the great games that our customers have come to expect," said CEO Ben Feder.

In addition to its ownership of the Grand Theft Auto and BioShock brands and their respective developers, Take-Two's portfolio includes such notable items as the ever-profitable Carnival Games series, the Max Payne property, and the Sid Meier's Civilization franchise along with developer Firaxis.

Electronic Arts is dropping its pursuit of Grand Theft Auto 4 publisher Take-Two Interactive, the company announced today.

Following months of hostile buyout offers by EA, the companies started talks under a confidentiality agreement last month.

According to the announcement today, "EA continues to have a high regard for Take-Two's creative teams and products," however, "after careful consideration, including a management presentation and review of other due diligence materials provided by Take-Two Interactive Software Inc., EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two."

Activision Blizzard subsidiary Activision Publishing announced today that it has purchased FreeStyleGames, a UK-based developer best known for its breakdancing game B-Boy (PS2, PSP).

FreeStyleGames is currently working on "localized downloadable content" for the Activision-owned Guitar Hero franchise, along with a new music-based game. According to Activision, the acquisition represents the latest step in "its global leadership position in the music-based genre." Financial details were not specified.

Over on its official site, FreeStyleGames affirmed that it will "retain creative control, continue to run the studio and have the opportunity to continue to achieve our own ambitious targets."

"We can begin to leverage Activision's experience, infrastructure and support to deliver on the games we have in development," the developer added.

Japanese publisher Capcom has revealed that it plans to pursue "friendly acquisitions and partnerships" with developers worldwide as it strives to increase games sales in North America and Europe, though it will not merge with a major Japanese publisher.

"There are many independent developers overseas with genius development capabilities," explained Mega Man creator and Capcom R&D head Kenji Inafune. "Collaborating with these developed will firmly establish out position as 'Capcom of the world' and further strengthen the title brand."

Part of those plans include "collaborating with companies with an already established record for developing sport-related games," as the company previously did... Read more

Japanese game studio Tecmo, publisher of Dead or Alive and Ninja Gaiden, turned heads last week when it turned down a buyout offer from Final Fantasy maker Square Enix only to enter merger talks with publisher Koei.

Now, Tecmo has emerged to publicly respond to failed suitor Square Enix. In a statement translated by Kotaku, Tecmo acknowledged Square's questions which previously had been ignored and added: "To answer Square Enix's proposal within the time frame of one week provided little room for negotiation and discussion."

Tecmo also credited Koei for a better negotiating situation. "Conversely, regarding the proposal from Koei, there is time for management to consider how to integrate and most likely arrive at ultimately raising our corporate value. This is why we have begun talks with Koei concerning corporate integration."

Koei, perhaps best known for its battlefield hack-and-slash Dynasty Warriors series, has found itself in a difficult situation after the peak of the PlayStation 2. In Japan, it's now "very tough for third parties like us to do our business," said Koei president Kenji Matsubara to Gamasutra.

In a more diversified Japanese market, Koei sees itself stretched thin, a problem Matsubara implies may be solved by a merger. "[The market's] in a transition situation ... these days, we have to spend resources on handhelds, popular consoles like the Wii, and high-performance consoles like the Xbox 360 and PS3."