Ex-Activision executives form studio, sign EA deal

* New studio formed by creators of "Call of Duty" series

SAN FRANCISCO, April 12 (Reuters) - Electronic Arts Inc (ERTS.O) has reached a publishing and distribution deal with a new game studio formed by the creators of the "Call of Duty" franchise, which became a blockbuster for EA rival Activision Blizzard Inc (ATVI.O).

The new development studio announced on Monday, Respawn Entertainment, was formed by Jason West and Vince Zampella, who led Activision's Infinity Ward studio until they were fired last month.

Zampella and West co-founded Infinity Ward, which was acquired by Activision in 2003. The studio developed the original "Call of Duty" game and several others in the series.

West and Zampella sued Activision after their dismissal, seeking $36 million in royalty payments and damages.

The company countersued, charging that the two men, among other things, negotiated with Activision's rivals while under contract and tried to prevent the company from compensating Infinity Ward employees in order to make them "easier to poach" when the men left to form their own studio.

Activision did not immediately respond to a request for comment on Respawn's deal with EA.

In a statement Monday, Respawn said it is assembling a team of designers, artists and engineers to create games. EA was awarded exclusive worldwide publishing and distribution rights to future games.

Shares of Redwood City, California-based Electronic Arts rose 1 percent to $19.55 in midday trading on the Nasdaq. (Reporting by Gabriel Madway, editing by Gerald E. McCormick)

http://www.reuters.com/article/idUSN1218839120100412?type=marketsNews

Good news for EA. Also, this is kind of fast, could it be that they were in talks with EA while still under contract with Activision? Well, I hope this contract allows them to make a better game than MW2.

EA poaching developer's?

but yea that was fast, I have a sneaky feeling this is going to be going to court over this with the developer's stuck in the middle. yike's

Everyone thought that Harmonix was such a great deal for EA too. Didn't work out to be quite the golden goose they hoped it to be.

This is going to be fun if EA can turn one of there games into half the sales monster MW2 has been then we are going to be seeing some risk taking again from EA. Anyone who played deadspace knows that is a good thing.

EA just distribute HMX, MTV Games are the publishers.

While in this case EA are actually the ones taking the risk

And also...the shooter market is now owned by EA, Battlefield, Medal of Honour, New Epic IP and now this

this is a new studio! not something owned by the third party publisher. so the statement in witch the law suit suggest wouldn't be valid.

Rockband failed? news to me.

I didn't say it failed, but its not pot o gold. Especially after the Beatles.

I expected something like this... I guess several key employees from IW will soon or later join this new studio.

Good luck to them, I just hope they don't just make CoD clones