Gaming accounts probed
The games industry is under the fierce scrutiny of the Securities and Exchange Commission in the USA, as the watchdog organisation looks into the accounting practices of various major publishers, including Acclaim, Activision and THQ who have already fessed-up to being part of this investigation which is said to encompass the whole industry.
"The investigation appears to be focused on certain accounting practices common to the interactive entertainment industry," commented an Activision SEC submission, "with specific emphasis on revenue recognition." As reported by Gamesindustry.biz, who also noted that Take Two are also under-investigation concerning their accounting practices.
It is also of little surprise that Acclaim are involved, as the PLC is currently being sued by its own shareholders who claim they were misled by those in charge. Former SEC enforcement official Nancy Grunberg told Reuters: "I'm not sure I know of an example of where they launched an investigation of an entire industry like this," she commented. "That does sound a little unusual to me, except for the example of the analysts for the major stock-brokers." Thanks go out to The Register where this development was first reported.