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NVIDIA, AMD in hot water for potential price fixing
Hoo boy, this could be a nasty one. You know how NVIDIA and AMD got slapped with those federal subpoenas a week ago? At the time, no one was sure what the DoJ was getting at, but apparently it wasn't just to look at the pretty graphics these firms churn out. Turns out NVIDIA, AMD and ATI have been accused of some antitrust shenanigans, with the DoJ alleging the firms "have engaged in a contract combination, trust or conspiracy, the effect of which was to raise the prices at which they sold graphics processing units and cards to artificially inflated levels." We're not so sure that the main argument -- that graphics card prices are almost always the same, reaching around $500 in the high end -- will hold a lot of water, given the specs pumping nature of the graphics card biz, but allegations of secret meetings between graphics card execs to discuss pricing could be a bit more damning. The DoJ is requesting documents as far back as 1990, so this could get messy. Intel has managed to steer clear of this whole cartel fiasco, thanks to its lack of a discrete graphics biz, but we're sure they're totally jealous right now -- perhaps they'll buy NVIDIA just to join in on the fun.[Thanks, Mack S.]
Take-Two looks to the PSP for comfort
Take-Two, the company behind the mega-popular brand Rockstar Games, is facing some troubles. Although the company has greater revenues this year than last, Take-Two is facing some serious issues. Firstly, the company has "received additional grand jury subpoenas issued by the District Attorney of the County of New York requesting documents ... regarding stock options and other equity based compensation." Also, Wall Street analysts think that the stock for the company is overvalued: "the current analyst consensus EPS estimates for its third quarter, and revenue and EPS [earnings per share ]estimates for its fourth quarter are too high."With plummeting stock prices, Take-Two looks towards the PSP for solace. The company speaks of the upcoming Grand Theft Auto: Vice City Stories and "a Rockstar PSP title based on a premier brand out of the fourth quarter" as upcoming releases that should more than move a few units. The company hasn't revealed what the mystery PSP title is, but it appears that all bets are on Sony's handheld for the company now.See also:TTWO shares drop on earnings warning, stock option investigation[Via Gamespot]
