Capcom is revising its DLC strategy to include less content on-disc at launch, senior vice president Christian Svensson writes in a post in the Capcom forums. "We would like to assure you that we have been listening to your comments and as such have begun the process of re-evaluating how such additional game content is delivered in the future," Svensson says.

This introspection follows vicious complaints about Street Fighter X Tekken's on-disc DLC, to which Capcom responded that it sees no distinction between on- and off-disc DLC. A few titles currently in production will ship with on-disc DLC, including Dragon's Dogma, Svensson writes.

Capcom decided to add DLC on Dragon's Dogma discs "at the beginning of the game's development cycle as at the time this was determined to be the most efficient way of ensuring certain content was made available," according to Svensson. "You are being heard," Svensson concludes.

According to the latest update on the Blizzard forums, the Diablo 3 servers for North America are up and running. The servers went down for maintenance earlier today – the launch has suffered some hiccups – but now you should be able to log in and take a hit of that sweet, sweet Diablo 3, no problem. Happy looting!

Translating the tome that is author George R.R. Martin's masterwork A Song of Ice and Fire is a task that must be both daunting and erratic. In its second season on HBO, the television adaptation of the series has been lovingly crafted into a marvelous weekly hour of television. In the video game world, developer Cyanide Studio has stumbled in its task thus far, releasing an abysmal strategy game that seemed to be created less in devotion to the source material and more in reaction to the franchise's new mainstream spotlight. With the studio's second effort at the series, the French developer has brought the Seven Kingdoms to life in a new, role-playing adventure.

Unlike the strategy title A Game of Thrones: Genesis, the RPG Game of Thrones feels like it was cobbled together by people who have genuine affection for the series. But Cyanide's ideas themselves seem more grand than the company is capable of delivering, showing stitches of the small studio's limitations throughout. It's the intention of the HBO series – with the budget of a SyFy original movie.

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The hits keep coming for ex-baseballer Curt Schillings' 38 Studios. The company reportedly missed its latest loan payment of $1.125 million to the state of Rhode Island on May 1, effectively defaulting its $75 million loan. WPRI spoke with Rhode Island House Speaker Gordon Fox who confirmed the news.

The loan's facilitator, Rhode Island's Economic Development Corporation, called an "emergency meeting" for tomorrow morning, wherein it will discuss "an unexpected occurrence that requires immediate action to protect the public regarding the 38 Studios financing." As reported earlier, if 38 Studios were to fully default on its loan obligations to investors supplying the loan via the Rhode Island government, the responsibility would fall to Rhode Island's taxpayers – to the tune of $112.6 million.

Of the $75 million borrowed by 38 Studios from the state of Rhode Island, $49.8 million was received by the studio as of March 15, WPRI reports. Given that, it seems worrisome at best that 38 Studios was unable to fulfill its recent payment of $1.125 million. 38 Studios is working on the Kingdoms of Amalur MMO – the game was originally promised for a launch ahead of 2013, when 38 Studios is set to begin paying back bondholders on its $75 million loan. It's unclear what stage its MMO is at, and 38 Studios hasn't made a public statement regarding its recent issues.

[Image credit: 38 Studios]

Some of you may have experienced this first hand, but if you've yet to suddenly go offline while playing Diablo 3, here's what happens. First, your game will lock up for a minute or so, then you'll be sent back to the character selection screen.

According to Eurogamer, at this point you'll log back in and find that you've retained all gold, experience and items – no penalties there. Once you get back into the game, you'll start from your last checkpoint.

The decision to require a constant internet connection initially received some blowback from the community, but it would seem it's not as bad as initially thought, at least in one regard. Eurogamer even notes that being booted back to the character selection screen didn't happen every time – occasionally the game would resume as if no disconnect even occurred.

"We look forward to launching Darksiders [2] beginning on August 14 in North America," announced THQ CEO Brian Farrell during an investor conference call today. Farrell said that the delay from the previous June date was a "demonstration of our commitment to quality" – and that, after discussions with retailers, the publisher determined that "mid-August is a more favorable release window."

Pre-orders for Darksiders 2 are more than five times what they were for the first game at the equivalent point before release, Farrell noted. THQ is accompanying this release with double the marketing spend of the first game as well – it needs a hit game, and badly.

THQ saw a net revenue loss of $239.9 million for the fiscal year ending March 31, 2012, $100 million more than the previous fiscal year's loss of $136.1 million.

"We have made significant changes to our business, and are on track to execute our strategy of delivering quality connected core gaming experiences, beginning with the sequel to the award-winning Darksiders in August," president and CEO Brian Farrell said in a THQ earnings statement.

THQ has seen a rough year, with plummeting revenue despite the success of Saints Row: The Third and WWE '12. THQ laid off 240 employees, slashed the salaries of its head honchos and cut its "kids' licensed video games" department earlier this fiscal year, following quarter losses of nearly triple the previous period.

THQ has sold through 84 percent of its shipped uDraw tablets and expects to sell its remaining inventory in fiscal 2013. The company's "future kids' license commitments" have been reduced by $30 million, THQ reports.

THQ describes its emergency layoffs, salary cuts and company rehashing as follows: "The company exited the traditional kids' licensed games business, and streamlined its product line, organization and cost structure to support a smaller company positioned for sustained profitability."

South Park: The Game was originally announced with a launch in the second half of 2012, but it has been pushed to Q4 of FY2013, THQ's financial statement reveals. THQ's financial years run April through March, putting the new launch window in early 2013 territory.

Developer Obsidian Entertainment was hit with layoffs in March, with a few losses coming from the South Park: The Game development team.

As part of today's year-end financials, THQ announced that the Saints Row franchise has shipped 11 million units globally. Speaking specifically to the latest installment, Saints Row: The Third, the company revealed it has shipped over 4.25 million units and that "the game has generated the highest digital revenue of any console title in the company's history."

That's not the conclusion of Saints Row for the year. Saints Row: The Third: Enter The Dominatrix is expected to launch this September. The game is a standalone product that does not require the third installment to play and started life as an April Fool's gag.

Mercenary Ops is something of a rarity. While there are quite a few Western-developed games being published in Asia by Chinese and Korean companies, there aren't a lot of Chinese-developed online titles being published by Western companies.

Developed in China by Yingpei Games, which used to be called Epic Games China, the shooter is being distributed by the San Francisco-based outfit Kalends, a group of developers who've decided to try their hand at publishing on their own.

As for the game itself, Kalends has announced that Mercenary Ops will be released as a free-to-play, microtransaction-based title – a business plan that has deep roots in China, but is only just breaking ground stateside.

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We wonder – when someone finishes an epic, sprawling title such as Diablo 3 in a matter of hours, does he experience the years of excitement, adrenaline and joy had by unrushed players as a super-compressed ball of electric hype? And if so, how does his heart not explode?

Diablo 3 player Yoshichan would know the answers to these questions, as he posted final stats from Diablo 3 showing that he finished the entire game in 12 hours and 29 minutes. Yoshichan played as a Barbarian on Normal difficulty, reached level 32, had 8,368 Lifetime Kills, 412 Elite Kills and collected 168,481 gold during his run. He obviously didn't run into many Templar followers.

We suggest Yoshichan pop an aspirin and give Diablo 3 another, heartier go, but only if he promises to stop and smell the brimstone along the way.

Update: It appears a few more players have gotten past this dreaded "Error 37" monster we keep hearing so much about to finish Diablo 3 in just seven hours. A group of four Korean players ran through the entire title in seven hours on Normal difficulty, and a group of Chinese players did the same, Tom's Hardware reports. [Thanks, AlexLiebensfeld.]

Ubisoft ended the 2012 financial year on the up, reporting a gross profit of €718 million ($917 million) and sales up 2.1 percent to €1 billion ($1.4 billion) year-over-year, according to its financial results for 2011-2012.

Ubisoft ended fiscal 2011-12 with net income of €37.3 million ($47.6 million), up from a net loss of €52.1 million ($66.5 million) in the 2011 fiscal year.

Sales from "core gamers" in Assassin's Creed Revelations, Rayman Origins, Driver San Francisco and free-to-play title The Settlers Online generated €578 million ($738.1 million) in revenue, Ubisoft reported. Casual games brought in €483 million ($616.8 million) in revenue, mainly from Just Dance, Rocksmith and free-to-play title Howrse.

Core and casual titles contributed to a 110.8 percent jump in online and digital sales, bringing that figure to €80 million ($102.1 million), Ubisoft reported.

Ubisoft's net cash position is down from €99.2 million ($126.6 million) in 2011 to €84.6 million ($108 million) in 2012, while current operating income rose 90 percent to €56 million ($71.5 million) year-over-year.

With Rhode Island politicians and 38 Studios silent on the precarious financial condition of the developer, the potential cost of the doomsday scenario to taxpayers has come to light. WPRI reports that if 38 Studios can't pay the bonds it received from the state, taxpayers will actually be responsible for paying back $112.6 million through 2020.

The math works a little something this this: The Rhode Island Economic Development Corporation borrowed $75 million from private investors for 38 Studios, at interest rates between 6 - 7.75 percent, with the expectation that 38 Studios would pay it back with the sale of games.

For the record, 38 Studios has only launched one product, Kingdoms of Amalur: Reckoning, which it only had due to its acquisition of developer Big Huge Games. Big Huge Games was already working on an RPG prior to the sale, but altered it to fit the Amalur world after the purchase.

If 38 Studios can't pay, the governor is required to ask the General Assembly to repay bondholders.

Game industry sources tell Joystiq that if 38 Studios does collapse, despite this specific deal having been widely criticized from the start, it could have wider repercussions for the industry trying to obtain tax breaks in other states. The silence out of Providence right now is deafening.

Just because you're far away from Blizzard, Australia, doesn't mean that the publisher doesn't love you. Case in point: after hearing about the issue with Australia's GAME retail chain and how that could affect Diablo 3 pre-orders (it would effectively cancel them without refund), Blizzard took to action.

On its forums, Blizzard reps explained how Australians affected by the issue could submit their receipt for a GAME Diablo 3 pre-order (purchased before May 15, 2012) directly to Blizzard for a refund. That "refund" only goes through after you've purchased the game directly from the official Diablo 3 site, as Blizzard's handling refunds via whatever payment method was used for the pre-order. In so many words, after paying for the game twice, Blizzard will refund your original pre-order expenditure with GAME.

Blizzard doesn't list the final instruction, perhaps out of kindness, which is to send a sharply worded letter to GAME's Australian reps. More details on how to submit your pre-order receipt to Blizzard will be posted "as soon as possible."

Having fun with Diablo 3? If you hope to keep having fun, you might want to avoid the game-breaking bug discovered by fellow players. According to many posts on the Blizzard forums, equipping a Templar follower with a different shield may result in the game desynchronizing from Blizzard's servers. Users are also reporting that they are unable to log back into Diablo 3 – specifically encountering timeout error 3006 – even after restarting the game.

As noted by Eurogamer, the issue may be restricted to the Demon Hunter class. Blizzard is currently looking into the problem. In the meantime, regardless of your class, you should probably avoid swapping equipment with the Templar follower.

Update: Apparently the issue arises specifically if you swap items that you currently have equipped with the Templar. Still, probably safer to not mess with a Templar's equipment at all for now..

Activision has paid out $42 million to the "Infinity Ward Employee Group," which sued Activision in 2010 seeking profits from Modern Warfare 2. A source speaking to Polygon said that the payment was not a settlement; rather, Activision's discovery phase (for its own lawsuit against former Infinity Ward leads Jason West and Vince Zampella) found no evidence that the Employee Group members were complicit in the breach-of-contract issues for which Activision is suing, and so Bobby Kotick and Activision agreed to pay them.

That group sought $75 million to $125 million, plus punitive damages. IWEG attorney Bruce Isaacs told Polygon that "although it is a meaningful payment it is only a small portion of what we are seeking in litigation." And it is still going forward with said litigation. Isaacs said the payment was a "cynical attempt to look good before the jury trial."

At this point, a portion of the current conversation surrounding Black Ops 2 is in regards to the engine powering it, version 3.0 of the Infinity Ward (IW) engine – IW 3.0 powered Call of Duty 4: Modern Warfare, Call of Duty: World at War and the original Black Ops. If you're worried the visuals in Black Ops 2 won't be up to snuff, Treyarch head Mark Lamia assures us all the engine has seen numerous tweaks, downplaying its age in a recent audio interview summed up over on One of Swords.

Lamia said "a pretty significant amount of work" in Black Ops 2 is going into the graphics and the lighting. "I think what people are asking for is for us to push. They want us to make a better-looking game; they want things. I don't think those are things people can't ask for. We asked ourselves that very same question - we wanted to advance the graphics. I think the questions are valid. The answer may not need to be an entirely new engine, but you might need to do an entire overhaul of your entire lighting system. The trick is, we're not willing to do that if we can't keep it running at 60 frames per second - but we did that this time."

Lamia gave an analogy akin to remodeling a home – not with a rocket launcher, but rather he talked about sectioning off parts of the metaphorical house for more local improvements. "There's a lot of good still in that foundation that you wouldn't get rid of, and we don't. We look to advance in the areas that support our game design. Engines, each time they get touched, they change. The creators alter them; they don't modify what they don't need to, and then they alter what they need to. You can't make a competitive product if you're not upgrading that engine along the way."

May the fourteenth be with you: Star Wars: Knights of the Old Republic and Jedi Knight 2: Jedi Outcast are each available on Mac and are 25 percent off on Steam today, in celebration of "May the 10 days after May the fourth be with you" day or something. Each title costs $7.50 with the sale, which ends May 21 at 10 a.m. PST.

Both games first dropped in 2003 but they hold up pretty well nine years on, especially at less than $10 -- at least they've aged better than we imagine The Old Republic will have by 2020.