SEC starts probe of Acclaim, Activision
Game publishers Acclaim and Activision filed information requests with the SEC today, informing investors that the Securities and Exchange Commission had contacted the companies and made requests for information. The Activision filing specifically indicated that the request for information is not to be taken as an indication that the company has violated the law, but rather that the investigation "appears to be focused on certain accounting practices common to the interactive entertainment industry, with specific emphasis on revenue recognition."
THQ also told Reuters that they too had been contacted by the SEC with requests for information. One analyst was quoted as stating that this industry-wide inquiry is unusual.
7/18/2003 Ryan Hartmann