Dreamworks Negotiating New Game Licensing Deal

Shrek and Kung Fu Panda CG movie creator Dreamworks Animation has revealed that it is in negotiations to select a new video game license deal, as its current agreement with Activision is set to run out next Summer. Dreamworks Animation has a one-time agreement with THQ for a game based on its upcoming CG movie Oobermind, but following that, it will select a partner, says CEO Jeffrey Katzenberg. According to a Los Angeles Times report, negotiations are already underway. The news emerged as Dreamworks Animation, which is an independent, public-traded spinoff of the Dreamworks movie studio, reported its second-quarter revenues down 7 percent to $132 million. But the company would have seen a further drop to $108 million if not for a $24 million benefit due to an amendment to its licensing deal with Activision. This benefit demonstrates how key game tie-ins are to bolstering the animated film giant's business. The amendment provided extra income for games based on films like Monsters vs. Aliens. Whichever publisher becomes Dreamworks' new partner will contend with its enhanced new film release schedule of five movies every two years, with three films released in 2010 -- though its unclear exactly which of these will be covered by the existing Activision agreement.