Midway and Eidos considering a merger?

What we heard: Eidos parent company SCi Entertainment has been the subject of numerous rumors ever since the publisher announced in September that it was in "extremely preliminary" talks with a potential acquirer. The Guardian was quick to report that the potential purchaser of SCi was Ubisoft, a charge the publisher denied.

That was followed by a report from The Times that said media conglomerate Time Warner and an unnamed Chinese company were also interested in the Tomb Raider and Hitman publisher. That article even suggested that Electronic Arts could be interested in the London-based SCi,since EA had previously pledged to invest in the British gaming industry.

Next-Gen ci...

Warner Bros. going Blu-ray exclusive

Just two days before Bill Gates' Consumer Electronics Show keynote, Microsoft's chosen next-gen video format suffered a major setback. Late Friday, movie and television studio Warner Bros. announced that it is discontinuing its support of the HD-DVD format, and will release its high-definition home video offerings solely on Blu-ray Disc beginning this coming May. Currently, the company, which controls nearly 18 to 20 percent of the US home video market, supports both Blu-ray and HD-DVD.

"Warner Bros.' move to exclusively release in the Blu-ray disc format is a strategic decision focused on the long term," said Barry Meyer, Warner Bros.' chairman and CEO, in a statement. "...

Microsoft sued over Xbox Live outage

Microsoft now faces a lawsuit over recent problems with its Xbox Live online gaming service. Three Texas residents filed a lawsuit Friday on behalf of themselves and others who have had trouble connecting to Xbox Live in recent weeks.
The suit, filed in U.S. District Court in Houston, claims Microsoft's outages represent a breach of contract and negligent misrepresentation for which the software maker is liable. The suit doesn't claim specific damages, but notes the amount is in excess of $5 million.
In the suit, the plaintiffs allege that Microsoft should have known strong holiday sales would tax its servers. "Microsoft knew the increase in subscriptions would increase game-play on its servers, yet...