THQ announces extension of WWE renewal notice; Pachter explains
by Alexander Sliwinski 
{ Oct 28th 2009 at 11:30AM }
THQ is cool with the WWE, but it's not very chummy with JAKKS Pacific, its longtime partner in the WWE licensing venture. The wounds also run deep between JAKKS and the WWE. When asked for comment on the license renewal and further details regarding the three-way deal, a THQ representative told Joystiq that the publisher plans to renew its contract with the WWE, and then added, "Beyond that, I cannot comment."
The business, politics and legal issues are certainly complicated. We spoke with Wedbush Morgan analyst Michael Pachter who laid out multiple scenarios, but in the end he believes the most likely outcome is that the joint venture between THQ and JAKKS will be terminated. If JAKKS enforces its (believed to be one-year) non-compete clause, then no WWE games can be produced. Neither side would benefit from that, however.
Pachter suggests that the WWE's renewal deadline was extended to give THQ and JAKKS time to settle their issues. What it sounds like to us: THQ and WWE want to move forward as a couple, and the previous arrangement, featuring JAKKS as the third wheel, has worn out its welcome. Check out Pachter's complete analysis after the break.
And now, a reading from the Book of Pachter:
"The WWE license is between WWE and a joint venture between JAKKS Pacific and THQI. The JV is a legal entity, and neither JAKKS or THQ can enter into a new contract with WWE on their own. JAKKS and THQ have been suing one another for a bunch of different reasons, but the relevant one is that THQ is trying to terminate the joint venture, so that it can enter into a license deal with WWE on its own. JAKKS said in a counterclaim that a) THQ cannot terminate the JV unilaterally (I'm not sure that I agree, but that's what they said) and b) even if the JV terminates, THQ signed a contract that said it would not produce WWE games for 12 months after the termination. THQ counterclaimed that a) it can terminate unilaterally (I think this is the right interpretation, but I don't have the contract) and b) it doesn't have to honor the 12-month non-compete upon termination (I think THQ has a very weak argument for this one, but again, I don't have the contract).
"The likely outcome is that the JV gets terminated and that JAKKS stops getting money from the deal in 2010. If JAKKS enforces its non-compete clause with THQ, both THQ and WWE get hurt, since there won't be any games produced. JAKKS doesn't gain anything but the good feeling it might derive from being spiteful. However, THQ and WWE lose something ...
"It's pretty clear that WWE doesn't want to deal with JAKKS any more, and neither does THQ. The alternatives are to keep the deal as is for another five years (THQ and WWE unhappy, JAKKS happy), terminate the JV and have no WWE games for a year (THQ and WWE unhappy, JAKKS neutral), or pay JAKKS something to go away (THQ and WWE slightly upset, but happy about being able to deal with one another without JAKKS, and JAKKS happy). I'd bet on the third alternative, and THQ has another two months to make it happen."
Reader Comments (Page 1 of 1)
Darth Bradwart, Dark Lord of the Sith @ Oct 28th 2009 11:41AM
Wow, Pachter. Couldn't just say 'They don't like Jakks'?
Captain Planet [Planeteer | Power of Captain Planet] @ Oct 28th 2009 11:46AM
You know Pachter gets paid by the word right?
Cthulhupal @ Oct 28th 2009 11:43AM
Every time I leave my best friend's house in downtown L.A., I drive through downtown and pass the Wedbush Tower. Every time I drive by, I smile to myself as I imagine that somewhere in there, Michael Patcher equipped with a notebook, pen, and 9mm pistol (just in case) jumping into a time machine and bringing back news on the future video games.
MC Double Def DP @ Oct 28th 2009 11:45AM
Just give me a wrestling game developed by AKI please! I don't care if it's WWE, TNA, jobbers, rappers, grandmothers, whatever!!! Just Bring It!!!
PSN: John-Paul-Jones (click for last.fm profile!) @ Oct 28th 2009 5:50PM
Just Bring It, Shut Your Mouth and Here Comes the Pain were the best WWE games!
Captain Planet [Planeteer | Power of Captain Planet] @ Oct 28th 2009 11:45AM
ALL HAIL THE PACHTER OR HE WILL EAT YOUR KITTENS
Tom @ Oct 28th 2009 11:50AM
This reminds me the book WWE Encyclopedia,
http://www.amazon.com/gp/product/075664190X?ie=UTF8&tag=shopguid0b-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=075664190X
written in kayfabe (pretends that wrestling and the personalities are "real"), so you are not going to get any inside information as far as behind the scene stuff goes.
Candlejack @ Oct 28th 2009 11:51AM
All hail the mighty Patcher! He who sees what hasn't been seen, he who knows what no one knows!
Ahhhhhhhhhhhhhmen
Mr Mobius - the wandering artist @ Oct 28th 2009 11:52AM
Who made WWF No Mercy? Get them back!
MC Double Def DP @ Oct 28th 2009 11:59AM
AKI, hence my previous comment :)
Cthulhupal @ Oct 28th 2009 12:03PM
Didn't they also make WCW Versus The World? I know they didn't make those shitty Nitro or Thunder games. I remember when I played WCW versus the world, I would just do brainbusters continuously until I got a KO probably killing my digital opponent in the process.
MC Double Def DP @ Oct 28th 2009 12:18PM
yup, and the first 2 def jam games (not the terrible Icon)
I just learned their company changed their name...hmm
http://en.wikipedia.org/wiki/Syn_Sophia
Cthulhupal @ Oct 28th 2009 2:10PM
MAN I LOVED FFNY. my favorite memory of it was bringing my xbox over to my friends house and getting drunk with my friends when his momw as out of town. He pocked danny trejo and i threw him in front of the subway train. we laughed so hard, really good game.
Cody @ Oct 28th 2009 1:19PM
Man, Jakks is responsible for some classic WWF games, like all the ones for N64. Those were the only ones worth playing.
VaultBoy @ Oct 28th 2009 3:42PM
Jakks is a toy company, all they do is scan the models of the superstars, thats it. Yukes makes the games now, or at least the last ten smackdown titles. Jakks is responsible for the action figures and character scans. Not much else as pertains to the games.
SuperA187 @ Oct 28th 2009 1:28PM
As long as I get more THQ/Smackdown games then I'll be happy
Brazell @ Oct 28th 2009 2:23PM
Hopefully they use this to take a couple years off and come out with a good, fun wrestling game that everyone enjoys. I do not watch wrestling, but I love those old games... even the Smackdown games on PSX were pretty good. By the PS2 / X-Box era, the games had become stale... and the last few years have just been brutal.
Hopefully they use this time off to evolve the games.
tsoul @ Oct 28th 2009 3:42PM
Interesting deal. THQ couldn't make a WWE game unless they went through JAKKS (WWE's toy company) first? My guess is that JAKKS holds the rights to WWE "Interactive" products, which would be a pretty "broad" (and probably REALLY old) agreement. THQ probably argues this is counter-productive and would like to work with WWE directly, which it sounds like the WWE wants to do.
Btw, THQ will license whatever is cheaper or easier to manipulate to what they need. By this I mean the use of the Aki Corp's or Yuke's fighting engine. THQ used Aki for the N64 stuffs, but not anything after. Yuke's for the win!
Clavius @ Oct 28th 2009 4:24PM
Something tells me that Jacks just wishes to keep its finger in this most likely healthy pot of money.
I've stayed away from the Raw vs. Smackdown titles since they came out due to the fact the game play hasnt changed much since the Smackdown titles on the Ps2 (or was it ps1?). THQ hopefully will win out in this, get Aki (or whateva they are called now) on board and release a fun wrestling game. Also um.. since when did the WWE think its a real sports game with releasing a title every single year!? I'd much perfer every two years and in the intrum some form of DLC that unlocks new storyline possiblities for free and for the hell of it charge me some loot for any new wrestlers that come on board to the company.
Faceman @ Oct 28th 2009 9:27PM
Jakks is garbage. Bring back AKI!!
mike @ Dec 4th 2009 12:41PM
I just checked the Syn Sophia (formerly AKI) website and it seems they are going to publish games from now on, so i dont think they'll work for THQ again. I miss those type of Wrestling games. Fire Pro Wrestling and WWF No Mercy had similar types of gameplay. Bring that type of gameplay back for the next one. And go back to having a different game for each console. That way they can bring the very best out of it for that particular console. Notice how SvsR has been pretty average since it went multi-platform.