Jakks Pacific is currently in the process of trying to renew its video game license with WWE through the end of 2014 reports The Wrestling Observer Newsletter. WWE’s contract with Jakks Pacific and THQ will be finishing up at the end of this year, although Jakks Pacific reportedly has an option year.
The expectation is that WWE would be putting up their license to the highest bidder as they are already leaving Jakks Pacific for Mattel in the action figure/toy department. There are also said to be issues between Jakks and THQ as Jakks was against THQ acquiring the UFC license seeing it as a competitor to the joint license they have with WWE.
THQ filed a lawsuit in response against Jakks Pacific in California Superior Court saying Jakks didn’t have the authority based on their joint licenses to renew with WWE without their consent. THQ is also attempting to get out of their one year non-compete in the pro wrestling genre when it comes to making a wrestling game saying it is not enforceable under California law. Revenue from Smackdown vs. Raw in 2007 made up 25% of the total gross of revenue for THQ. The game was down 24% in sales in 2008.
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