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.

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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"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."

Ex-Team Ninja head Tomonobu Itagaki's first project after leaving Tecmo could be in trouble. During today's financial briefing call to investors, THQ president and CEO Brian Farrell said Devil's Third no longer fits the publisher's "profitability profile."

"The profitability profile for Devil's Third no longer met our internal threshold and we are currently in discussions with third parties regarding the future of this title," Farrell said. "There were a couple of unforeseen events that happened during the development of Devil's Third. One was the company that Valhalla was using for the engine went out of business, so we had to assist Itagaki and the team with a new engine – it took a fair amount of time and cost a fair amount of money."

The other big issue was the appreciation of the Yen, which reduced Devil's Third's potential for profit compared to other stuff in THQ's pipeline. "We think it's an excellent franchise; we've really enjoyed working with Itagaki-san, and we're going to explore other opportunities with him and others to make sure this product comes to market."

Devil's Third is the first project from Tomonobu Itagaki's new development studio, Valhalla Game Studios. Itagaki, who is quite possibly best known for his years at Tecmo on the Dead or Alive and Ninja Gaiden series of games, left Tecmo back in 2008.

Street Fighter X Tekken may have sold over a million units since launch, but Capcom recently declared that the game didn't hit internal expectations.

"Sales of Street Fighter X Tekken have fallen short of our plan. We believe one of causes is cannibalism because of the large number of other games in this genre that were launched within a short time," Capcom stated in a Q&A following its earnings release.

Although such a quote could be directed at companies like Warner Bros.' Mortal Kombat, Namco Bandai's Soulcalibur 5 or indie titles like Skullgirls, we prefer to imagine Capcom speaking that quote into a mirror.

As Eurogamer notes, since bringing back the fighting genre to popular consciousness with Street Fighter 4 in 2008 (consoles in 2009), the company itself has launched: Super Street Fighter 4, Super Street Fighter 4 Arcade Edition, Tatsunoko vs. Capcom: Ultimate All-Stars, Marvel vs. Capcom 3, Ultimate Marvel vs. Capcom 3, Street Fighter x Tekken, along with PSN and XBLA re-releases of fighters from its back catalog.

Which would you be more likely to walk into a store and ask for? Something called "WWE 12" or something called "WWE Smackdown vs. Raw 2011?" THQ reports that common sense has won out, as it attributes increased sales of the new title, in part, to the new naming convention.

"The successful rebranding of this annual franchise has led to higher sell-through to date," the company notes in its latest earnings release, "which is up approximately 20 percent on like-for-like platforms in North America versus the year-ago title." THQ didn't share the sell-through number, but it did disclose that it shipped more than 2.2 million copies since November. It sounds like a much more successful rebranding than "Hollywood Hogan."

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.

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.

It seems to come up in every announcement of other FFXIII-2 DLC – and it's about the person on the game's box – so we're glad to finally see "Lightning's Story: Requiem of the Goddess" arrive today in North America.

In this episode, you play out a battle between Lightning and Caius, and get the opportunity to unlock Lightning for use in the main game ... which Square recommends you finish before playing the DLC. It's a bit of a catch-22. Also out today is "Snow's Story: Perpetual Battlefield," a Coliseum battle with Snow that also unlocks him.

These two episodes mark the end of Final Fantasy XIII-2 DLC, but Square is ending on a high note by releasing them alongside a set of 16 new costumes for Mog.

Joy Ride Turbo, the Kinect-free sequel to Kinect Joy Ride, will be released on Xbox Live Arcade on May 23, according to a new release schedule from Major Nelson. As previously revealed, Joy Ride Turbo features several different modes, including a new Stunt Park, and generally sounds a lot more like the Joy Ride Microsoft originally announced way back in 2009.

If your Kinect is feeling lonely as a result, this week's Xbox Live Deal of the Week revolves entirely around downloadable Kinect titles. You can grab Fruit Ninja Kinect for $7, while Hole in the Wall, Leedmees, Double Fine Happy Action Theater, Rhythm Party and Haunt have been knocked down to $5 each.

If your 360 controller is now feeling double-reverse lonely, next week will see discounts to some old-fashioned regular XBLA games. Specifically, Might & Magic: Clash of Heroes will be reduced to $7.50, while Outland and Beyond Good & Evil HD will be available for $5 each.

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."

Microsoft's Lionhead Studios is looking for a multiplayer level designer with "a deep understanding of online multiplayer games," a job posting reveals.

We assume Lionhead also would like any new designer to be adept at making the public forget Fable Heroes ever happened.

Lionhead's recent time in the spotlight hasn't focused on what games it may be creating, but instead on Fable creator Peter Molyneux's departure and what that might mean for the studio. With no other information or speculation on Lionhead's next title, aside from this multiplayer designer business, we're going to throw our best guess out there: A Team Fortress 2 clone that looks like Minecraft, plays like Call of Duty and is called "Half-Alive 3."

Prepare to be slightly, mildly confused. Gotham City Impostors, the non-Batman Batman game, is getting a free map based on Arkham Asylum, setting for a different recent Batman game. There's probably a way we could present that information that would be confusing, like "Batman game to be set in Arkham Asylum" or "You've never been to Arkham in this Batman game" but really it's not a big deal. Can you tell we started this post planning to play up the confusion angle and then stopped ourselves?

Speaking of confusion, this free map launched on the North American PSN last week by accident, in place of the Rodeo Pirate Pack. It will launch as planned on Xbox May 16, and PC at an unspecified date soon after.

Reckoning, indeed! A developing story out of Rhode Island has Governor Lincoln Chafee talking in uncertain terms about the financial condition of Curt Schilling's 38 Studios, which the state gave a controversial $75 million loan to a couple years back to move down to Providence.

The Providence Journal reports Gov. Chafee, who was against the loan during his election, spent a "weekend of work on this subject," but wouldn't go into specifics. "We're doing everything possible, like I would for any Rhode Island company," he said this afternoon. The Journal reports he added the work was about "keeping 38 Studios solvent."

"We're concerned and just doing everything possible to ensure that 38 Studios stays part of the Rhode Island community," Governor Chafee told WPRI.com. "We're working on different issues with them." Asked if 38 Studios' issues could be resolved, Chafee said, "We're working on it."

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Electronic Arts is prepping its own subscription-based companion service for its flagship military-centric first person shooter, according to a "very reliable source" belonging to Battlefieldo. The service (dubbed Battlefield™ Premium) would be to Battlefield 3 what Activision's Call of Duty Elite program is to Modern Warfare 3, granting access to "a number of content drops with unique in-game items not available anywhere else," so sayeth the allegedly leaked press release.

"First out is the one-of-a-kind Premium knife and black dog tag," the missive continues, "plus a set of soldier camos, weapon camos, dog tags and Assignments that will make sure you stand out and get more personalization options." Should this all pan out, Battlefield Premium will be officially announced during E3, specifically on June 4. We've reached out to EA for comment and will update if/when we hear back.