thq suing zuffa and ea over video game

With the release of EA's new UFC video game only months away, THQ has sued both companies for suspected under handed dealings in negotiations.

The UFC entered the video game business back in four years ago with UFC Undiputed 2009. Throughout the three iterations of the franchise the combat sports game was backed by video game developer THQ. However, last year THQ fell on hard times and closed shop in 2012. With THQ out of commission, the UFC contracted with EA Sports for the next rendition of their game. The sport wasn't new to EA as they had previously produced EA MMA featuring the Strikeforce roster.

Now, THQ seems to think there was something untoward in the negotiations between EA and Zuffa. They have filed a law suit against both companies (via MMA Payout):

THQ entered into a $10 million settlement with Zuffa in exchange for the termination of its license and all intellectual property rights to the UFC game brand in 2012. However, THQ now claims that this was a fraudulent transfer as it believes that EA had contacted Zuffa and conveyed the internal financial information it was provided by THQ during the potential sale of THQ. THQ claims that it was "hamstrung" in negotiations with Zuffa due to its knowledge of THQ's finances and the actual value of the UFC video game franchise was $20 million.

So, THQ is saying that EA informed Zuffa of their financial hardships. That information allowed the UFC's parent company to hardline negotiations and achieve a favorable settlement. It'll be on THQ to prove to the court that EA shared the confidential information with Zuffa. However, expect to see EA's new UFC game long before this is resolved.