Film financier Legendary Pictures is in discussions to acquire Epic Games, the developer of GEARS OF WAR, among others, per VARIETY.

Execs at both companies declined late last week to comment to VARIETY.

If the deal goes through, it would make Legendary the first film financing company to invest directly in videogames. Studios like Warner Bros. (where Legendary is based) have recently started putting their own money into games.

Electronic Arts has closed a deal with Universal Pictures to bring EA's new franchise and top-selling videogame, ARMY OF TWO, to the big screen.

Scott Stuber, through his Stuber Productions shingle, will produce the film along with EA, and screenwriter Scott Z. Burns, who recently co-wrote the blockbuster THE BOURNE ULTIMATUM, has signed on to adapt the game for the screen. Universal Pictures, Stuber Productions and EA are planning to begin production of the film in 2009.

Videogame publisher Activision Blizzard builds on facial animation technology created at Filmakademie's R&D Lab to raise the bar for in-game characters in the upcoming James Bond videogame QUANTUM OF SOLACE.

"Using the tools allowed us to enhance our production pipelines and shorten times for creating believable character animation," said Filippo Costanzo, Head of Research and Development. The technology was developed within the research project "Artificial Actors" at the Filmakademie's Institute of Animation.

The 2009 Electronic Entertainment Expo will take place from June 2-4, 2009, at the Los Angeles Convention Center. The re-expanded E3 will welcome all qualified computer and video game industry audiences, including international and U.S.-based media, analysts, retailers, developers and business partners to preview the latest in interactive entertainment and technology.

SPONGEBOB SQUAREPANTS FEATURING NICKTOONS: GLOBS OF DOOM has shipped to retailers nationwide for PlayStation 2, Wii and Nintendo DS from THQ, Inc. SPONGEBOB SQUAREPANTS FEATURING NICKTOONS: GLOBS OF DOOM is the latest release in the successful NICKTOONS videogame franchise, which has shipped approximately 4.5 million units worldwide.

The game is rated E for everyone and is available for the suggested retail prices of $39.99 (Wii) and $29.99 (PlayStation 2 system and Nintendo DS). In addition, the game is also scheduled to be available throughout Europe later this month.

The Mark Wahlberg-led videogame adaptation MAX PAYNE won its opening weekend (ending October 19) with $17.64M. The Fox film has vfx by Mr. X and SPIN VFX.

Disney's BEVERLY HILLS CHIHUAHUA (vfx by Tippett Studio, Cinesite, Image Engine Design, K.N.B. Effects Group, Kerner Optical, Proof, Realscan 3D and Svengali Visual Effects) dropped one place after two weeks at the top, bringing in $11.4M for a three-week cume of $69.3M.

It's quite a diverse week on VFXWORLD: Tara Bennett tells how Mat Beck & co. at Entity FX raised the bar on the second season of TERMINATOR: THE SARAH CONNOR CHRONICLES. I delve a bit more deeply into the convergence roadmap behind Ubisoft's acquisition of Hybride. And Alain Bielik talks to Everett Burrell about the vfx challenges of turning MAX PAYNE (opening Friday from Fox) from a videogame into a feature.

Bill Desowitz
Editor

INDY 4 is out now on DVD and Blu-ray, along with the DVD release of the new SPONGEBOB SQUAREPANTS special "WhoBob, WhatPants?", BOB THE BUILDER DVDs and The Ultimate Matrix Collection on Blu-ray.

INDIANA JONES AND THE KINGDOM OF THE CRYSTAL SKULL On DVD And Blu-ray

The highest-grossing installment of the popular adventure franchise, with more than $780 million at the global box office, Paramount Pictures and Lucasfilm Ltd.'s INDIANA JONES AND THE KINGDOM OF THE CRYSTAL SKULL will make its anticipated debut on DVD and Blu-ray October 14.

Sydney, Australia-based Digital animation studio Plastic Wax, who specialize in videogame production, are implementing global expansion plans that include extensive talent acquisition, investments in new technology and the opening of an office in San Francisco focused on business development.

Following detailed discussions with various interested parties over the last five months, Take-Two Software's board of directors has determined that it is in the best interests of stockholders to conclude its review of strategic alternatives and to continue operating and building Take-Two as an independent company.