SEC chooses not to recommend action against THQ [Gameindustry.biz]

Reuters is reporting that THQ has cleared itself of stock options fraud.

The company appointed a special, independent investigation to look into its stock options granting practices and today they reported that they found "no evidence of fraud or misconduct."

The story is a real snoozer and chock full of meaningless quarter references and the word "fiscal" is used like a bazillion times, but if you're interested hit the jump for the entire Reuters story. Brian Crecente

NEW YORK (Reuters) - THQ Inc. (THQI.O) said an independent investigation of its stock options granting practices found no evidence of fraud, but the video game maker will record an $11 million non-cash charge for incorrect measurement dates.

A special committee appointed by the board found "no evidence of fraud or misconduct," the company said on Tuesday.

It identified instances in which the company "misapplied GAAP by using incorrect measurement dates for financial accounting and reporting purposes on a number of occasions."

The $11 million after-tax charge covers the period of January 1, 1996 to March 31, 2006, THQ said in a statement.

The adjustments, after-tax for fiscal 2007, were immaterial and will be reflected in the company's quarterly report for the period ended September 30, 2006, THQ said.

For each of the 2006, 2005 and 2004 fiscal years, the adjustments were about $2 million and will be reflected in the company's amended annual report for the fiscal year ended March 31, 2006, THQ said.

The information in the reports for the fiscal years 2002 to 2006 and the quarters in fiscal 2006 and 2005 should no longer be relied upon, the company also said.

The committee recommended ways to improve the company's procedures for granting and administering stock options, which the board adopted and the company is implementing, THQ said.

It also said the company informed the U.S. Securities and Exchange Commission of the committee's findings and is continuing to work with the SEC.

THQ expects to file its March 31, 2006 10-K/A and its September 30, 2006 10-Q with the SEC by January 19. Once it makes those filings, it believes it will regain compliance with the Nasdaq stock market's listing requirements, the company said.

THQ finds no options fraud, will restate [Reuters]

Early last month, the FTC announced that they were putting the company on notice that any future misrepresentation of video game ratings or content descriptors would result in a xxx fine. And that the company needed to implement a system to "ensure that all game content is reviewed in connection with submissions to ratings authorities."

While the FTC ruling was announced last month the public, and in particular politicians, had 30 days to comment on the action, or inaction as some naysayers put it, and the FTC could have changed its mind. Now that the 30 day period has passed the decision is set in stone.

Take-Two Interactive also pointed out that the consent order and agreement was unanimously approved by the commission.

Paul Eibeler, President and Chief Executive Officer, stated, "We are extremely pleased that the FTC has concluded its very thorough investigation, and that the matter has been resolved. We recognize the importance of maintaining public confidence in the Entertainment Software Rating Board (ESRB) rating system and helping the ESRB educate parents and consumers about the rating system. We look forward to putting this behind us and focusing on what we do best - creating video games."

It's good to see that politicians weren't able to influence the decision of the FTC following their investigaiton. It even managed to withstand congressional hearings. Hit the jump for the official press release. Brian Crecente

Take-Two Interactive Software, Inc. (NASDAQ: TTWO) announced today that following the 30-day period for public comment, the Federal Trade Commission (FTC) has unanimously approved the Consent Order and Agreement with Take-Two and its wholly-owned publishing label Rockstar Games. All outstanding matters pending before the FTC have been settled and no penalties or fines have been assessed. Among other things, the Consent Order provides that the Company shall not misrepresent a video game's ratings or content descriptors and that the Company shall implement a system to ensure that all game content is reviewed in connection with submissions to ratings authorities.

Paul Eibeler, President and Chief Executive Officer, stated, "We are extremely pleased that the FTC has concluded its very thorough investigation, and that the matter has been resolved. We recognize the importance of maintaining public confidence in the Entertainment Software Rating Board (ESRB) rating system and helping the ESRB educate parents and consumers about the rating system. We look forward to putting this behind us and focusing on what we do best - creating video games."

After posting about a reader's strange experience with unwanted Xbox 360 Live spam, Microsoft shot us an email to officially say they had nothing to do with it.

"The recent communication to the customer was NOT sanctioned by Xbox Live. Microsoft's position is that the community will and should manage itself, through providing gamers with a voice they in turn take ownership and responsibility for their experiences.

Supporting this, Xbox Live has a robust feedback system in place for
situations exactly like this. If required, gamers can file a complaint
in the system to report inappropriate behavior or language, which
Microsoft will follow-up and investigate fully."

Funny enough, a few hours later we received a second complaint of Live spam, also about someone pimping Mission Impossible 3.

I just wanted to mention that I also received a message about MI3 a week or so back. They said something like "Where'd you get that cool Tom Cruise gamer picture?" and it was from someone with the name HM3 major. Ironically enough I had the Penny Arcade picture of the devil in at the time, and thought it was some random guy being funny...

Hmm, sounds like someone's hired 360ers to spam people about the movie. I hope Microsoft takes the iniative to look into this new form of guerilla marketing. —Brian Crecente