Activision has acquired Los Angeles-based 7 Studios, which is developing Scratch: The Ultimate DJ.
Activision recently approached DVD distribution specialist Genius Products with a view to buying the company, which rejected the offer. The latter is beginning to move into game production, reports Variety, and had been working with DJ equipment company Numark Industries and 7 Studios on developing turntable game Scratch.
With Activision itself creating a rival to Scratch in the form of DJ Hero, Genius and Numark are hoping to sue Activision for intentionally delaying the launch of their product.
7 Studios had previously been struggling after Brash Entertainment dissolved, owing the developer a reported $581,000. The studio, founded in 1999, has a presence in Taiwan, and has worked with HBO, Marvel, DreamWorks, and Bruckheimer Films.