Become a fan of Slashdot on Facebook

 


Forgot your password?
Close
typodupeerror
×
Games Entertainment

SEC Probe Investigates Activision, Acclaim 21

Posted by simoniker from the scary-men-take-away-earnings-and-liberty? dept.
Thanks to Yahoo! for passing on a brief press release from Activision and a similar release from Acclaim indicating they are "..part of a formal probe by the U.S. Securities and Exchange Commission into video game industry accounting practices." According to a separate Forbes article, Acclaim "..said the formal, non-public inquiry is entitled 'In the Matter of Certain Video Game Manufacturers'", meaning that other games publishers may also be under investigation - we'll update if any other publishers make similar announcements. Update: 07/18 23:59 GMT by S : According to this Reuters article, THQ is also involved in the inquiry, and analysts suggest an "..industrywide investigation would represent an unusually wide scope for a regulatory probe."
This discussion has been archived. No new comments can be posted.

SEC Probe Investigates Activision, Acclaim More

SEC Probe Investigates Activision, Acclaim

Comments Filter:

  • Price fixing maybe? (Score:3, Interesting)

    by SuperguyA1 ( 90398 ) * on Friday July 18, 2003 @04:41PM (#6474102) Homepage
    Could this include the fact that all video games seem to come out for exactly the same price?
    (Please don't flame, I don't know if this is SEC jurisdiction. That's why I'm asking).
    • Nor do I, but I don't think price fixing counts as part of an accounting investigation. I think price-fixing would be more the jurisdiction of the Federal Trade Commission. Also bear in mind that the article even is fair enough to note that being part of a probe is not intrinsically any indication of guilt.

      Also, regarding price-fixing, stores have sales on games fairly often. If they never did, then the fixing issue may come into play more.

      I'm still waiting on my check from the RIAA ;)
      • Your right, it is getting much better. But remember back in the SNES/Genesis days? Every game at every store was the same price. That was disgusting. Its so nice that we are beginning to see companies launch games at reduced prices and what not. I love buying great titles for 20-40, instead of 60 like before.
      • I'm still waiting on my check from the RIAA

        Here's the latest info [musiccdsettlement.com]. All the legal nonsense has gone through. They're tallying the forms now. They say cheques will be shipped out late-summer or early-fall this year.

      • "Also, regarding price-fixing, stores have sales on games fairly often. If they never did, then the fixing issue may come into play more."

        I'd be surprised if price-fixing was the issue. Game companies aren't exactly rolling in money made from ludicrous profits. There may be pressures to keep the price that high, but that probably has more to do with company survival than anything.
    • Could this include the fact that all video games seem to come out for exactly the same price?
      (Please don't flame, I don't know if this is SEC jurisdiction. That's why I'm asking).

      Actually price fixing would fall under the FTC jurisdiction. SEC wants to see your books and make sure you're not pulling a WorldCom or Enron.

      I guess Activision's plan to sue Viacom [slashdot.org] would look more like this:

      1: Sue Viacom
      2: ??????
      3: (Hide) Profit!!!

      Mike
    • That would be someone else's jurisdiction. I think what they're specifically looking at here is accounting, and nothing else...making sure the video game corporations aren't cooking their books.

      I think they're starting alphabetically, because Acclaim is trading for less than a dollar, and at under $13, Activision isn't exacly shooting through the roof.
  • Is it asking too much to hope that this investigation was spurred by the rapidly growing trend of releasing buggy, barely playble software and some underhanded agreements with many retail chains to not accept returns on unopened software? I know I'm not the only one with a dozen or so $50 drink coasters for games that just plain didn't work*cough*Enter the Matrix*cough*

    But seeing as its just the SEC, it probably has to do with some funny bean counting in the Accounting Department and we can continue to e
  • I think its funny that they are apparently starting with Activision and Acclaim. I always get the confused anyway... :) Hell, a lot of the video game industry seems crooked. Maybe they are just going in alphabetical order. =P
  • I would think that Activision would be under inquiry by the FDA because of the trace amounts of nicotine that they put into SoF2, but hey, what do I know.
  • I guess this is what happens when you do your accounting on Tombstones!

  • Huh (Score:2, Interesting)

    by nelsonal ( 549144 )
    The only weird accounting issue that I can think of for game companies has to do with their reserves of unsold product. The retail outlets are allowed to send back unsold products after a certain period of time, and becuse of these agreements, the video game makers are supposed to estimate how much product they expect to have returned, and then reduce their revenue by that amount. Anytime you let managment estimate something, it opens the door for games, managment can under reserve and raise current earni

Slashdot Top Deals

I have hardly ever known a mathematician who was capable of reasoning. -- Plato

Close