Jakks Pacific aren't the developers. Smackdown is developed by Yukes in Japan. Jakks Pacific (mostly known for their toys) had an agreement with THQ for the WWE license. WWE is ending their relationship with JAKKS, as they have signed on with Mattel.
The Press Release:
JAKKS Pacific, Inc. (NASDAQ: JAKK) announced that an arbitration with THQ over the rate of JAKKS' preferred return payment from WWE video game sales generated by the THQ/JAKKS joint venture for the period July 1, 2006 through December 31, 2009, has resulted in a determination by the arbitrator that JAKKS is entitled to receive a preferred return payment at a rate of 6% of net sales of the WWE video games sold by the joint venture, rather than the 10% rate that had been accrued by JAKKS and THQ pending the arbitrator's decision.
The arbitration award requires THQ to pay JAKKS approximately $34 million on account of the preferred return for the period from July 1, 2006 through March 31, 2009. As a result of the decision, JAKKS will reduce its receivable from THQ from approximately $57 million to approximately $34 million and take a non-cash charge of approximately $22.5 million in the second quarter.
It's somewhat complex, but if you're going to report on something, at least do your research first. While this comment...
Eurogamer.net wrote:THQ has a sturdy leg to stand on, of course - as new fighting series UFC 2009: Undisputed enjoys critical and commercial success.
...has bugger all to do with anything.