As the legal battle between DJ Hero developer Activision and Scratch: The Ultimate DJ publisher Genius Products continues to unfold, "sources with knowledge of the game's development" have told Kotaku that Scratch is now in the hands of a new studio.

Scratch was originally being developed by 7 Studios, but following Activision's purchase of the developer, Genius Products terminated the agreement. Activision and 7 Studios were then ordered to turn over the source code for the game and its development tools. Read more »

Original Splatterhouse developer BottleRocket Entertainment today shot back at former publisher Namco Bandai, alleging that Namco was "inept" in its handling of the project.

BottleRocket was abruptly dismissed from Splatterhouse development last month. Since then, Namco has publicly defended the move, stating that there was a "performance issue" with BottleRocket. Read more »