Deep Silver denies working with Spec Ops: The Line developer studio Yager on sequel to 2011 island-set zombie first-person shooter.

Earlier this week, a source told IGN Germany that Yager Development, which is presently finishing up Spec Ops: The Line for its June release, had been tapped to develop Dead Island 2. This is not the case, says Guido Eickmeyer, development director with the original game's publisher, Deep Silver.

Dead Island 2 is not in development, at least not yet.

"We are neither working with Yager on Dead Island 2 nor do we have any contractual agreement with Yager about any project at this point," he said.

The developer did not rule out working with Yager in the future, saying there is a "legitimate chance" the companies will one day team up. He even went as far as to say a future relationship could be on a project related to the Dead Island franchise.

Eickmeyer went on to explain that Deep Silver does not have Dead Island 2 "in concept or production with external partners" and that it is currently considering options for a sequel.

Dead Island was developed by Polish shop Techland and shipped in September 2011 to generally positive review scores. The game shipped 3 million copies and welcomed various add-on packs. Speculation about a follow-up sparked in November, when Techland filed a trademark application for Dead World.

Though a sequel to Dead Island is currently out of sight, a movie based on the property may see the light of day. Film studio Lionsgate optioned the rights from Deep Silver after the game shipped last year. Development of the Dead Island film will be led by The Mummy producer Sean Daniel and Stefan Sonnenfeld, who did postproduction work on various Pirates of the Caribbean films and X-Men: The Last Stand.

For more on Dead Island, check out GameSpot's review.

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Prachya Pinkaew to direct Tekken: Rise of the Tournament with an eye toward domestic theatrical release, will cast unknown actors instead of stars.

The Tekken live-action feature film is getting a follow-up from one of the most acclaimed martial arts movie makers of the past decade. According to The Hollywood Reporter, Ong Bak director Prachya Pinkaew has signed on to helm Tekken: Rise of the Tournament.

Jon Foo in the original 2010 version of Tekken.

Rise of the Tournament will be a prequel to the 2010 live-action film Tekken, which starred Jon Foo as Jin Kazuya and recapped his entry into the franchise's ongoing Mishima family feud. While the report mentioned no casting decisions, it did say the film will be eschewing stars in favor of actors who more closely resemble their in-game counterparts.

Production company Crystal Sky Pictures is hoping a get a domestic theatrical release for the film this time around, but nothing has been finalized yet. There is also no word on a script or release date for the project.

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Time Warner and Bright House customers now able to access HBO content through Xbox 360 application with Kinect support.

An HBO Go app launched on Xbox Live last month, but it did so blocking out users of one of the biggest cable companies, Time Warner. That embargo has ended, as Microsoft announced today that Time Warner and Bright House cable subscribers can finally access HBO content through the app on Xbox Live.

HBO Go, now available for Time Warner customers.

The HBO Go app brings the network's entire suite of programming to the Xbox 360, allowing gamers to stream shows like Game of Thrones, Entourage, and Deadwood. It is available only to those with a full HBO subscription and allows users to search and select programs via voice and gesture control through the Kinect.

Presently, the Xbox 360 is the only game console to offer an HBO Go app. In August 2011, HBO parent company Time Warner CEO Jeff Bewkes said the streaming service would come to game consoles, but no announcements have been made for the PlayStation 3 or Nintendo Wii.

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Multiple sources indicate series developer DICE to launch new bundle pack on June 4 with early access to upcoming Battlefield 3 add-ons.

Swedish developer DICE will bundle all Battlefield 3 downloadable content for a onetime fee, multiple sources have told Battlefieldo. According to the site, Battlefield Premium will launch on June 4 alongside a double XP promotional period for PC gamers.

Battlefield Premium will offer early access to upcoming BF3 map packs, say sources.

The site reports that five Battlefield 3 expansion packs, as well as new camo and exclusive in-game items, are included with the purchase of Battlefield Premium. Additionally, players who purchase Battlefield Premium will receive early access to upcoming map packs, reports Battlefieldo.

To date, DICE has released just one add-on for Battlefield 3, the launch-day DLC Back to Karkand. Forthcoming map packs for the game include June's Close Quarters, followed by Armored Kill and End Game. A fifth pack is rumored to launch in March 2013.

Earlier this week, the same site reported that Battlefield Premium would be a service, and offer a range of content drops in much the same way that Activision does with Call of Duty: Elite. No mention was made in today's report of a price for Battlefield Premium. As of press time, DICE owner Electronic Arts had not responded to GameSpot's request for comment.

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[UPDATE] Ubisoft confirms that trademarks for upcoming World War II shooter abandoned to avoid "administrative confusion."

Brothers in Arms: Furious 4 may not go to war this year as previously expected. Publisher Ubisoft has abandoned both trademark applications it filed for the title (via Superannuation), suggesting the four-player World War II action shooter has been either canceled or renamed.

Are the Furious 4 staying home?

The game is currently scheduled to arrive by the end of June, but Ubisoft and Gearbox Software have been mum on the title as of late, with the latest official update on the game's Facebook page coming some nine months ago.

Brothers in Arms: Furious 4 was announced during Ubisoft's media briefing at the 2011 Electronic Entertainment Expo via a graphic bar-scene trailer, reminiscent of Quentin Tarantino's World War II action drama Inglourious Basterds.

The first new installment in the Brothers in Arms franchise since 2008's well-received Brothers in Arms: Hell's Highway, Furious 4 takes place during World War II and follows a band of four soldiers chasing Hitler.

[UPDATE] After the publication of this story, a Gearbox Software representative explained that the Brothers in Arms: Furious 4 trademarks were abandoned to avoid "administrative confusion."

"Initially, Ubisoft submitted the trademarks on behalf of Gearbox with Gearbox and Ubisoft as co-applicants," reads a line from the statement. "The USPTO rejected this approach (about 9 months ago), noting Gearbox's exclusive registrations for all Brothers in Arms trademarks. Given the USPTO choice between abandonment or continued administrative confusion on the matter, we simply opted for administrative abandonment until re-filing becomes necessary. To avoid confusion with the USPTO, Gearbox will be filing its future Brothers in Arms-related trademarks directly and individually."

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Rhode Island government says 38 Studios is making overdue loan payment even as employees go without pay.

38 Studios is making up its missed loan payment, but apparently at the expense of its employees. According to Providence, Rhode Island-based news outlet WPRI, the Kingdoms of Amalur: Reckoning developer is submitting a $1.125 million loan payment it missed, but told the state's Economic Development Corporation that it was unable to pay its employees as scheduled.

This was one Reckoning 38 Studios was unprepared for.

The debt in question dates back to 2010, when the EDC secured a controversial $75 million in loans to entice 38 Studios--founded by former Major League Baseball pitcher Curt Schilling--to relocate from Massachusetts to the Ocean State. According to the WPRI report, 38 Studios employed 379 employees full-time as of mid-March.

The EDC board yesterday held an emergency meeting to discuss whether to provide additional assistance to 38 Studios to keep the company in business. While the board made no ruling on the matter, it is expected to consider the topic again on Monday. 38 Studios employees aren't the only ones being hurt by the company's situation. Yesterday, EDC executive director Keith Stokes, who helped structure the $75 million loan, resigned from his post.

Kingdoms of Amalur: Reckoning is the first title from 38 Studios. Designed with the help of R.A. Salvatore, Todd McFarlane, and Ken Rolston, the action role-playing game received a positive critical reception upon release in February and sold 330,000 copies in the United States across the Xbox 360, PlayStation 3, and PC, according to NPD data. Additionally, a sequel is in the works.

As of press time, a 38 Studios representative had not responded to a request for comment.

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Epic Games' Cliff Bleszinski says company has "huge responsibility" to "drag this industry into the next generation" with Unreal Engine 4.

Epic Games is calling on Microsoft and Sony to offer bleeding-edge visuals with the next wave of consoles, and it believes the Unreal Engine 4 can spur such an advancement in fidelity. In an interview published today at Wired, Epic Games design director Cliff Bleszinski said the company's proprietary Unreal Engine 4 needs to be at the forefront of next-generation technology.

The next wave of consoles are going to offer impressive visuals, if Epic has its way.

"There is a huge responsibility on the shoulders of our engine team and our studio to drag this industry into the next generation," Bleszinski said. "It is up to Epic, and [CEO] Tim Sweeney in particular, to motivate Sony and Microsoft not to phone in what these next consoles are going to be. It needs to be a quantum leap. They need to damn near render Avatar in real time, because I want it and gamers want it--even if they don't know they want it."

Why should Microsoft and Sony listen to Epic? Sweeney says his company has a more intimate relationship with manufacturers than others do.

"We're much more in sync with the console makers than any other developer is," he said. "That means we can give detailed recommendations with a complete understanding of what is going to be commercially possible."

A preview of the Unreal Engine 4 was offered to select licensees, partners, and prospective clients during the 2012 Game Developers Conference in March, with those parties required to sign a nondisclosure agreement.

As for advancements of the Unreal Engine 4 over its predecessors, Sweeney said the new framework includes tools that allow for shortened production cycles and lower development costs. In terms of technical specifics, the new engine includes a new dynamic lighting system, which operates based on calculations of objects' inherent properties, as opposed to being dictated by preprogrammed effects. This technology will supposedly allow for more realistic lighting, where "colors mix, translucent materials glow, and objects viewed through water refract."

For more on the Unreal Engine 4, and to see images rendered by the technology, check out the full Wired interview.

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Access to this summer's multiplayer test of Ubisoft Montreal shooter given away in GameStop sales promotion.

Far Cry 3 doesn't come out until September 4, but eager gamers can get a taste of Ubisoft's upcoming first-person shooter a little early. The publisher today announced that it will hold a two-week-long multiplayer beta this summer, with specialty retailer GameStop giving away invites to customers who buy Ghost Recon: Future Soldier.

Do not trust this man. He is not a GameStop employee and will not assure you a copy of Far Cry 3 when it launches in September.

There is a catch, as customers will need to be enrolled in GameStop's PowerUp Rewards customer loyalty program in order to receive the invite. When they purchase Ghost Recon on its May 22 launch, PowerUp members will be given a code to redeem at a GameStop website. On that site, players choose whether they want to be in the Xbox 360 or PlayStation 3 beta test, and they will receive the actual code via email once the beta goes live. Ubisoft will also be giving codes out through its social channels and the game's official site.

The Far Cry 3 beta will include six playable classes, as well as multiple maps and modes. Players will be able to upgrade and customize their characters, as well as get a feel for how the game's zip lines and combat sliding mechanics will impact multiplayer.

Far Cry 3 will cast players as Jason Brody, a man stranded on a strange tropical island similar to the setting of the first Far Cry. Gamers will head out into this "savage paradise" and "slash, sneak, and shoot" to survive in a world that has "lost all sense of morality."

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United Kingdom-based Criterion Games reportedly staffing up for mystery project on Sony's newest portable device.

Burnout developer Criterion Games is reportedly hiring for a PlayStation Vita project. Eagle-eyed Internet sleuth Superannuation spotted a job listing for a software engineer at the United Kingdom-based developer that called for a person to optimize and tune the "game resource system for the PS Vita."

Is Criterion bringing a new racing game to the PS Vita?

The job listing has apparently been amended, as it now states this person will optimize and tune the "game resource system for other platforms." As of press time, Criterion Games parent company Electronic Arts had not responded to GameSpot's request for comment.

Criterion Games released Burnout Crash last year on Xbox Live but has not made public any new projects. The last retail effort from the shop was 2010's Need for Speed: Hot Pursuit, which won warm reviews and shipped more than 5 million copies. A new Need for Speed title has been confirmed to ship in 2012.

Last August, job listings at the studio hinted that a forthcoming project from the company would be set in an open world--like the studio's 2008 hit Burnout Paradise--and ship for new platforms. For more on Criterion Games' latest title, check out GameSpot's review of Burnout Crash.

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Debut episode in Telltale Games' new adventure series hits platinum status in two weeks, becoming company's fastest-selling series to date.

Telltale Games' new The Walking Dead episodic adventure game series has started off on a high note. The developer announced today that the first episode--A New Day--was downloaded over 1 million times across PC, Mac, PlayStation Network, and Xbox Live in two weeks.

The Walking Dead sprinted to 1 million in sales.

TellTale Games has adapted a number of popular franchises into episodic adventure games, including Back to the Future and Wallace and Gromit, but none were as immediately successful as The Walking Dead. The company said today that The Walking Dead is the fastest-selling series in company history.

The next episode in the Walking Dead series, titled Starved for Help, is expected to launch across PC, Mac, and consoles in June. Additionally, the season's first episode--A New Day--is scheduled to hit iOS devices next month. A total of five episodes are planned for the series.

Telltale's Walking Dead is a single-player episodic game based on Robert Kirkman's comic book series. It stars Lee Everett, a man convicted of a crime but given a chance to redeem himself, albeit in a world infested with undead. For more on the franchise, check out GameSpot's review of episode one.

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Fable developer staffing up to bring new role-playing game with massively multiplayer online qualities to future-generation technology.

With Fable Heroes out the door and development on Fable: The Journey coming to a close, what will developer Lionhead Studios build next? According to a job listing at the United Kingdom developer, the studio is staffing up to create an all-new next-generation title with massively multiplayer online genre qualities.

Is Microsoft making a console MMO game?

The job ad (which has since been removed) was spotted by indefatigable Internet sleuth Superannuation and reported on by MCV. According to the description, the title will be a role-playing game designed with a "radical take on how cooperative and multiplayer gameplay feeds into the experience." Additionally, the title will blend single-player and multiplayer into one experience, claims the ad.

On top of that, the new game will boast a "complex progression system, multiple routes through the campaign, and an MMO-like multiplayer experience that will affect the outcome of the player experience, and many other attributes surrounding their profile (such as the environment and outcome of certain actions)." Further specifics were not offered.

While the job ad in question is no longer available, a Lionhead Studios requisition for an experienced server programmer seeks a person with knowledge of MMO titles.

Lionhead Studios is familiar with role-playing games, having created the Fable franchise, but the company has never built an MMO game. As of press time, Microsoft had not responded to GameSpot's request for comment.

If Lionhead Studios is in fact working on an MMO game, the company will do so without Peter Molyneux. He left Microsoft in March and is currently heading up 22 Cans, a new independent developer.

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2K Games and Gearbox Software confirm $100 Deluxe Vault Hunter's edition and $150 Ultimate Loot Chest version for upcoming shooter sequel.

Come September, gamers yearning to pick up a premium bundle for Gearbox Software's new shooter Borderlands 2 will have two options to consider. 2K Games and Gearbox Software today confirmed the game's two special editions: the $100 Deluxe Vault Hunter's collector's edition, and the $150 Ultimate Loot Chest edition.

For $150, this can all be yours.

The Deluxe Vault Hunter's limited edition includes a Marcus Kincaid bobblehead doll, as well as a hardbound Inside the Vault: The Art & Design of Borderlands 2 book. Additionally, the premium bundle packs in a collectible sticker set, a map of in-game world Pandora, a digital comic download code, and downloadable in-game content.

Gamers looking to spend even more can pick up the $150 Ultimate Loot Chest limited edition of Borderlands 2. This bundle packs in all items within the Deluxe Vault Hunter's edition, as well as a scaled loot chest replica, a steel book case for the game, and a "Creatures of Pandora wide-format ID chart." Additionally, this version includes a lithograph postcard set, field notes from Sir Hammerlock, a cloth map of Pandora, and a certificate of authenticity.

Both special editions will be available for the Xbox 360, PlayStation 3, and PC editions of Borderlands 2. 2K Games and Gearbox Software also today announced that those who preorder either bundle will score access to the Borderlands 2 Premiere Club, which grants users a range of in-game content, as well as the previously announced fifth character class, the mechromancer.

Borderlands 2 is due out in North America on September 18 and will ship internationally on September 21. For more on the title, check out GameSpot's latest preview.

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Call of Duty publisher allegedly launched a secret internal investigation against Jason West, Vince Zampella; EA settles out of court with Activision.

A number of unsealed documents from the upcoming trial between Activision and a group of ex-Infinity Ward developers have revealed a testimony that alleges the publisher launched an internal investigation against lead plaintiffs Jason West and Vince Zampella.

A new testimony alleges Activision tried to spy on ex-Infinity Ward developers.

The documents--made public this week by Los Angeles County Superior Court Judge Elihu Berle--contain the testimony of Activision's former senior director of information technology, Thomas Fenady. As reported by Giant Bomb and The Los Angeles Times, Fenady's testimony alleges that Activision's in-house lawyer, George Rose, asked him to spy on West and Zampella by accessing their work emails, voice mails, and computer files.

According to Fenady, who left Activision in 2009, Rose told him the decision to investigate West and Zampella came from Activision CEO Bobby Kotick. The testimony also alleges that the objective--known as Project Icebreaker--was begun with the aim of building evidence against West and Zampella but that efforts to monitor the personal correspondence of the developers, which included using outside parties, were unsuccessful.

Other documents unsealed by Judge Elihu Berle in the case include a plan documenting bonuses from West and Zampella's initial agreement in 2003, as well as a memorandum of understanding from 2008, explaining the extension of the developers' initial contract.

According to the LA Times report, the documents form part of the contract that Activision had with West and Zampella and the 40 other game developers involved in the lawsuit, laying out the money that Activision owes the developers in royalties and bonuses.

Activision claims that it fired West and Zampella because they were secretly planning to start their new studio with the help of Electronic Arts, while still employed by the Call of Duty publisher. West and Zampella claim that the real reason they were fired was so Activision wouldn't have to pay them millions of dollars in royalties associated with Modern Warfare 2. Beyond the performance-based payout and any other court-awarded monetary damages, West and Zampella are seeking to gain co-ownership of the Modern Warfare brand. If successful in court, West and Zampella would have the right to create and release both old and new instalments in the Modern Warfare franchise.

According to a recent report from Bloomberg, Activision has dropped the $400 million claim against EA, which originally made up part of its lawsuit against West and Zampella.

Although the terms of the settlement were not disclosed, Bloomberg reported that EA will now be removed from the upcoming trial, set to take place on May 29.

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Studio founded by former Call of Duty developers not unveiling first project at next month's Los Angeles trade show.

Gamers yearning for the first proper look at Respawn Entertainment's first game won't get it at next month's Electronic Entertainment Expo. Speaking to Joystiq, Respawn community manager Abbie Heppe said, "We won't be showing anything or doing any press related to the game" during the annual geek gala. Heppe confirmed this statement to GameSpot this afternoon.

Respawn's first game isn't coming into focus at E3.

This year's Electronic Entertainment Expo will be the second straight that the company has opted out of public activities. This time last year, the San Fernando Valley, California-based studio announced it would skip the industry's big summertime event.

Respawn has kept its first project out of sight thus far. Outside of a blurry screenshot and news that the game will be published by Electronic Arts, no further firm information is available concerning the studio's maiden title.

Speculation on the project has suggested it will be a first-person science-fiction shooter that may support 3D and could ship by March 2013. Respawn Entertainment was founded in 2010 by fired Infinity Ward developers Jason West and Vince Zampella and is currently staffed by a host of Call of Duty developers, among others.

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Capcom taps Monster Hunter producer to lead development on beginner-friendly shooter EX Troopers for Sony's console and Nintendo's portable.

Capcom will launch a Lost Planet spin-off title for the PlayStation 3 and 3DS called EX Troopers, according to the latest issue of Japanese gaming magazine Famitsu (translated by Andriasang). Development on the game will be led by Monster Hunter series producer Shintaro Kojima.

Lost Planet will be found on the 3DS and PS3 this year.

According to the report, EX Troopers will take place in the same world as Lost Planet, but that will be the only main similarity to the series. EX Troopers will sport an anime visual style and will tell a "school-themed story," says the magazine.

More specifically, EX Troopers will recount a battle between snow pirates and the indigenous Akrid aliens on the planet EDN-3rd. Gamers will suit up as Bren Turner and will be introduced to female snow pirate TeeKee, who has the power to communicate with the Akrid.

Kojima explained that EX Troopers was designed with the intent to be a beginner's action shooter, but did not offer more details. The game is reportedly 60 percent complete and is due to ship later this year, ahead of 2013's Lost Planet 3. That game is a prequel to the original Lost Planet and is currently in development at Spark Unlimited.

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$100 premium edition of upcoming sci-fi shooter to include nine maps, early access to six specializations, live-action film; Spartan Ops mode detailed.

Gamers looking forward to restarting the fight have a new option to consider, as Microsoft today announced Halo 4 Limited Edition.

Halo 4 Limited Edition will set you back $100.

The premium bundle includes access to the War Games map pack, which includes nine new environments spread across three future multiplayer add-ons. A release schedule for the map packs will be unveiled at a later date.

A Microsoft representative told GameSpot this afternoon that the map packs will be available for purchase separately after launch through Xbox Live. Pricing information was not made available, but the company said this will be announced later.

Additionally, Halo 4 Limited Edition grants gamers early access to six specializations, which unlock additional customization options. The six specializations available in Halo 4 Limited Edition will be made available at a later date to all gamers.

On top of that, Halo 4 Limited Edition packs in the UNSC Infinity Briefing Packet, which includes an armor customization diagram, a blueprint of the Infinity ship, and additional "insight" into what it means to be a Spartan-IV soldier.

The premiums don't end there. Halo 4 Limited Edition also includes various digital content offerings delivered through Xbox Live, as well as the special edition of the upcoming 90-minute live-action film Halo 4: Forward Unto Dawn.

On top of announcing Halo 4 Limited Edition, Microsoft today formally took the wraps off Halo 4's Spartan Ops offering. This mode will offer a weekly series of episodes through Xbox Live that tells the story of the UNSC Infinity and its crew after the events of Halo 4. The episodes will also introduce players to a new team of Spartans called Majestic Squad.

According to Microsoft, the episodes will provide a backdrop for the Spartan Ops game missions, which will also be released on a weekly basis. Gamers can take on these objective-based missions either alone or with up to three friends. Further specifics were not offered.

Halo 4 is due for a worldwide release exclusively on the Xbox 360 on November 6. It is a sequel to 2007's Halo 3 and takes place nearly five years after the events of that game. Halo 4 is currently in development at Microsoft's new Halo label 343 Industries, the shop that recently took over for series creator Bungie.

For more on Halo 4, check out GameSpot's latest coverage.

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Volition dev LinkedIn page indicates studio has three unannounced titles in the works for current-gen platforms and "mysterious next generation."

Saints Row developer Volition may be headed to the next generation, according to a LinkedIn profile page spotted by Internet supersleuth Superannuation. The profile page of a staffer at the outfit indicates the Champaign, Illinois-based studio has three unannounced projects in the works for current-generation platforms, as well as "the mysterious next generation of consoles."

Volition is gearing up for the next generation, it seems.

The profile had no other details on the projects. Already confirmed upcoming Volition titles include the company's InSane collaboration with filmmaker Guillermo del Toro, as well as Saints Row 4.

Additionally, a second Volition staffer published (and has since removed) a listing for Saints Row 4 on his LinkedIn resume, indicating the project is presently in development for current-generation platforms including the Xbox 360, PlayStation 3, and PC.

Publisher THQ confirmed Saints Row 4 last year, with company executive vice president Danny Bilson saying the madcap sequel will be even "wilder" than Saints Row: The Third. That game launched in November and has been the biggest contributor to THQ's bottom line.

As of press time, THQ had not responded to GameSpot's request for comment on the matter.

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Various LinkedIn profile pages indicate DICE may be at work on third entry in shooter franchise, sequel to 2008 free-running game.

Battlefield: Bad Company 3 and Mirror's Edge 2 have been spotted on various profile pages at professional networking site LinkedIn (tracked down by GamerZines), indicating DICE is possibly at work on sequels to its shooter and free-running franchises.

Is DICE reenlisting Bad Company?

The Bad Company 3 reference comes from a user who said he "provided video game prototype, design, and demo feedback on various AAA titles including Battlefield: Bad Company 3, Dead Space 2, Devil May Cry 5, and other unannounced titles" between 2009 and 2011.

Battlefield: Bad Company 2 shipped during March 2010, and to date, no mention has been made of a follow-up. A sequel to that title would not come as much of a surprise, as it won warm reviews upon launch, and sold nearly 6 million copies. A spin-off to the core Battlefield franchise, the Bad Company series launched in 2008 with the well-received original.

As for Mirror's Edge 2, the profile page of an ex-EA software engineer says he worked on that game between July and August 2009, creating the "wandering of crowd system within the Unreal 3 Engine." Yet another former EA employee's page says he built "new gadget and interactive features" for Mirror's Edge 2, as well as leaderboards and a minigame inside the Mirror's Edge story.

A sequel to Mirror's Edge has not been formally announced, but in June 2009, EA Games Europe vice president Patrick Soderlund confirmed a follow-up was in the works. At the time, he said, "You will see another Mirror's Edge for sure. It's just a matter of when that time is and what we do with it. We have a small team on it, and I'm excited about what we do."

An EA representative told GameSpot, "We do not comment on rumors or speculation."

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Setbacks for latest game from Tomonobu Itagaki have THQ looking to hand off the project to another company as publisher cites profitability concerns.

THQ is distancing itself from Devil's Third. In an investor conference call today, the publisher confirmed that it was talking with other companies about taking the maiden project of Valhalla Game Studios off its hands.

THQ is looking to make a deal with Devil's Third.

"The profitability of Devil's Third was not competitive with our other releases," explained THQ CEO Brian Farrell.

There were two major reasons given for the project's change in status. First, the third-party company Valhalla had been using to make the game engine went out of business. Considering also the strengthening value of the yen against the dollar, THQ decided that the game no longer met its profitability profile.

Devil's Third was announced at the 2010 Electronic Entertainment Expo and made a splash as the first project for Valhalla Game Studios, the new developer founded by Dead or Alive creator Tomonobu Itagaki in the wake of his acrimonious parting with Tecmo. While Itagaki continued to do interviews to promote the project, little else was seen of it beyond the original trailer. Last year, Itagaki explained why the game was a no-show at the Tokyo Game Show but said to expect more information on it in early 2012.

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Obsidian-developed role-playing game pushed to next year as THQ posts $239.9 million loss for fiscal year; Saints Row: The Third ships 4.25 million, expansion coming in September.

South Park: The Game will not ship this fall as was previously announced. THQ today announced that the Obsidian Entertainment-developed role-playing game has slid to a release date of sometime during the first three months of 2013.

Cartman and pals aren't making it out this year.

The publisher did not provide a reason for the delay, and as of press time, the company had not responded to GameSpot's request for comment.

The news comes as part of THQ's latest financial report, which saw the company's net sales for the 12 months ended March 31 rise to $830.8 million, up from the $665.3 million recorded a year ago. It wasn't all rosy for THQ, as the company posted a net loss of $239.9 million for the period, worse than the $136.1 million hit the firm took the year prior.

The company's digital business was a boon for THQ, as revenues in this sector for the year spiked 62 percent to $59 million.

THQ also parsed statistics and let loose some new information for some of its biggest brands. The company said Saints Row: The Third has shipped more than 4.25 million units since its launch in November. Additionally, THQ revealed that the Enter the Dominatrix expansion for Saints Row: The Third will arrive this September. Previously, it was expected sometime this fall.

The company also broke down shipment figures for its major fighting games. THQ said WWE 12 has shipped more than 2.2 million units since its launch in November 2011, up about 20 percent over the previous year's game. Additionally, UFC Undisputed 3 has shipped 1.4 million units since it debuted in February, the company said.

In terms of platform revenue, the Xbox 360 proved most successful for THQ. Microsoft's home console accounted for 36.7 percent of total sales, generating $306.42 million in the process. The PlayStation 3 came in second place, accounting for 27.4 percent of the share, totaling $229.2 million. The Nintendo Wii (14.3 percent share, $119.5 million) and the PlayStation 2 (.4 share, $3.3 million) rounded out the rest.

THQ unveiled a new, streamlined business strategy earlier this year, and today, the company said when the plan is fully realized in fiscal 2013, it is expected to result in a reduction of costs totaling $180 million. Additionally, THQ said it has reduced its commitments to children's licensed properties by about $30 million and reiterated that it is no longer creating software or hardware for the uDraw GameTablet.

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