Patent fights are a fact of life for hardware manufacturers these days, with Sony and Nintendo both losing suits over their controllers, and Microsoft opting to settle at least one such case at the cost of $26 million. The latest patent suit to surface, as reported by GamePolitics, sees an Illinois man suing Nintendo over his patent on a “method for operating an electronic machine using a pointing device.”

Originally filed in March, the case is currently on hold pending the outcome of a US Patent and Trademark Office re-examination of the patent. That process was set in motion by iPod maker Apple in a separate suit Martin brought against the company over alleged infringement of the same patent, according to an unopposed motion to stay the proceedings filed by Nintendo. The re-examination may tilt the case in either direction, as Martin is looking to expand the patent with 14 new claims, but the patent office could also amend or cancel the patent’s existing claims.

The patent’s abstract describes a gaming system that has an amusement mode and a gambling mode, as well as a touch screen. The system would also have a GPS system, allowing access to the wagering functions only if the system were located somewhere gambling is legal. That feature would be particularly useful if the units were installed on planes, boats, and other transportation methods that move through areas where gambling is legal. The patent was originally filed in August of 2003.

While the patent title specifically mentions a touch screen, the suit doesn’t necessarily involve the Nintendo DS. When contacted by GameSpot, Martin’s legal representation confirmed the Nintendo Wii was an example of a product that he believes infringes on the patent. He added that Nintendo’s product line is being assessed for other possible violations.

Before the proceedings were stayed, Nintendo responded to the suit by denying that it had violated the patent, saying the patent’s claims are invalid, among other defenses. As of press time, the publisher hadn’t responded to GameSpot’s request for comment.

The great game-industry saga of 2008 continued today with the next step in Electronic Arts’ protracted takeover attempt of Take-Two Interactive. In a filing this morning with the Securities and Exchange Commission, EA announced that it was “in substantial compliance” with the Federal Trade Commission’s information requests.

Early last month, the FTC had requested additional information to ensure that the proposed buyout–which turned hostile in March–did not violate US antitrust laws. Some concerns had been raised because the deal would see EA Sports’ sole major rival, 2K Sports, subsumed into EA’s multibillion-dollar organization.

According to a recent earnings report, 2K Sports is losing money despite holding exclusive third-party publishing rights to Major League Baseball. EA has a complete monopoly on all major licensed football games, including NFL, NCAA, and Arena leagues, as well as the sole rights for FIFA-branded soccer games. Both companies develop and publish NHL hockey and NBA basketball games, although 2K recently let its NCAA College Hoops license lapse.

As a result of today’s FTC announcement, EA’s $2 billion bid for Take-Two will continue beyond its previously announced July 18 deadline. Although the Redwood City, California-headquartered company today promised no action until August 21, its offer currently stands at $25.74 per share of Take-Two stock, which was trading at $24.26 on the NASDAQ as of press time. Despite the fact that the offer would now earn its shareholders a profit, Take-Two’s board has and vociferously refused EA’s advances, citing record-shattering sales of Grand Theft Auto IV as proof that the company would fare better on its own.

300Ubisoft has been vocal about its ambitions to storm the silver screen,and today it announced another step in that direction with the acquisition of Montreal-based special effects studio Hybride Technologies.

Hybride has lent its expertise to dozens of projects dating back to 1995, from Highlander: The Final Dimension to Snakes on a Plane. However, it is best known for its work on 300 and Robert Rodriguez films like Sin City and Spy Kids.

While Hybride will assist the publisher with attempts to bring its own game series to the big screen, it will continue to work for external partners in the film industry. The companies will also share technology and develop tools in tandem. Ubisoft projected Hybride’s work for external companies to bring in €6-7 million ($9.4-11 million), with operating income roughly 10 percent of that figure.

“The future of our industry depends on our ability to create brands that captivate audiences and to extend those brands to other forms of entertainment,” Ubisoft CEO Yves Guillemot said in a statement. “The acquisition of Hybride falls directly into the strategy that has already led us to open a digital creation studio in Montreal and to acquire the Tom Clancy brand for video games and ancillary products.”

Ubisoft has a few more ties to the film industry at the moment. Producer Jerry Bruckheimer is working on a film adaptation of the publisher’s hit Prince of Persia series,and the publisher is making a game based on James Cameron’s upcoming film Avatar. That project looks to be more than a simple movie adaptation, as it will debut the publisher’s latest 3D technology, which Cameron himself touted in a Microsoft advertising conference earlier this year. Guillemot said in an UbiDays presentation that gamers can expect to see the new tech next year.

Konami’s vibrantly colored and docile Elebits, a launch game for the Nintendo Wii, was applauded by critics as much for its hybrid shooter-puzzle gameplay as its proof-of-concept Wii Remote controls. However, rather than again blaze new ground with a follow-up to the game, Konami has opted to deliver Elebits: The Adventures of Kai and Zero exclusively on Nintendo’s well-established DS.

Returning to the theme of finding life’s power supply in the world’s various nooks and crannies, Elebits: The Adventures of Kai and Zero presents a world in which the omega particles are used to solve puzzles with their unique, special powers. Although Konami gave scant few details, players will use the elebits’ powers to “reveal hidden paths, freeze flowing water, turn darkness into light, levitate rocks, and much more.” The game will also feature a multiplayer battle mode for up to four.

Elebits: The Adventures of Kai and Zero will be available for the Nintendo DS this fall. No rating or pricing information has yet been announced

Midway’s 2007 fiscal year could have ended better, but it wasn’t without its peaks. After bemoaning delays to installments in many its major franchises, Midway CEO David Zucker said in October that new installments in its Blitz and Mortal Kombat franchises, as well as two open-world games, would reverse the company’s fortunes in 2008. Mortal Kombat vs. DC Universe details dropped in April, while the first of those open-world games–the just-delayed This is Vegas–was revealed in February.

Today, Midway opened the line for the third title teased by Zucker, saying Blitz: The League II would arrive for the Xbox 360 and PlayStation 3 this fall. That represents a marked next-generation leap, considering the original was announced initially for the Xbox and PS2, with an Xbox 360 and PSP edition following, and a Wii adaptation that, while announced, didn’t make it out of development.

Continuing with the franchise’s time-honored tradition of cheap tricks, late hits, and in all other ways unsportsmanlike play, the unlicensed Blitz: The League II rides roughshod over the NFL’s rules. Players will be given the ability to precisely aim exactly where they want to land the brunt of their hits as well as create their own touchdown celebrations. The game will also feature online multiplayer, an expanded roster, and a story penned by Playmakers scribe Peter Egan.

Returning as this year’s cover’s star will be Lawrence Taylor, dominant New York Giants linebacker and Hall of Famer. Taylor, who developed a reputation for cocaine use that spanned his 12-year career, is apropos for the game’s cover duties, considering the original title was banned in Australia for its depiction of drug use.

This week, gamers not distracted by the looming kickoff of the 2008 E3 Media & Business Summitwill be treated to several high-profile games. Foremost among the week’s debuts is Sid Meier’s Civilization Revolution, the first console installment in the traditionally PC-centric turn-based strategy/simulation series in nearly a decade. Though the Wii edition of the game is on hold, a demo for the Xbox 360 and PlayStation 3 has been available for weeks. The DS edition of the game–which Meier told GameSpot is very similar to the console versions–will mark the franchise’s handheld debut.

For those fonder of destroying things than building them, Monday saw Unreal Tournament III for the Xbox 360 ship out. Released for the PC and PlayStation 3 last year, the latest entrant in Epic Games’ celebrated shooter series is the first to use the developer’s Unreal 3 Engine, which famously powered Gears of War. GameSpot’s review of the PC version has a detailed rundown of the game’s single-player campaign and online multiplayer modes, which are expanded in the 360 version.

Also arriving one month before the torch is lit at the real thing is Beijing 2008 - The Official Video Game of the Olympic Games. Developed by Eurocom Entertainment (Pirates of the Caribbean: At World’s End), the PS3 and 360 game will be the second Olympics-based game published this century by Sega, after last year’s & Sonic at the Olympic Games for the Wii and DS.

For those who didn’t pick it up on the 360 or PS3 in February–when it generatedsolid reviews and strong sales–Devil May Cry 4 also arrives for the PC this week. Joining it on the original gaming platform are Nancy Drew: The Phantom of Venice and Ghost Online.

Besides two Virtual Console releases–King of the Monsters and the WiiWare game SPOGS Racing–the Wii will play host to Final Fantasy Fables: Chocobo’s Dungeon. The turn-based role-playing game follows one of the titular bird-creatures and series regular Cid as they navigate a variety of dungeons to help an amnesia-stricken town regain its collective memory.

Last but not least, Wednesday will see two new games for Xbox Live Arcade: the Hot Shots Golf-like Golf Tee it Up! and the co-op actioner Schizoid. The latter is historic, given that it’s the first commercially released game that was made by independent developers using the XNA Game Studio Express toolset. Microsoft outlined its XNA-based indie-friendly development initiative at this year’s Game Developers Conference in February.

This week’s new releases are listed below (list taken from retailer information–actual dates may vary).

The original Harvest Moon released for the Super Nintendo planted its first seeds in Japan in 1996, with a localized edition landing on US shores a year later. Despite the 11 years that have passed since then, Japanese gamemaker Natsume said today that it would be celebrating the franchise’s 10-year anniversary with two new installments in the franchise, slated to arrive for the Nintendo DS and Wii this summer.

On the Wii, Harvest Moon: Tree of Tranquility players will once again pick up the shovel and the spade to revive a town that has fallen into disrepair. With the protective Mother Tree mysteriously away from her post, players must rectify the island’s decrepit condition by undertaking a variety of activities that foster the earth, and restore the spirits of townsfolk. Natsume promises Tree of Tranquility will make use of the Wii Remote in a way that will “give players the chance to feel like they’re really farming.”

In Harvest Moon: Island of Happiness for the DS, players will channel their inner Gilligan, attempting to create a paradise after being shipwrecked on an island. This island isn’t deserted, however. Players will cultivate first their farm and then an entire town, with the goal of tying the knot with one of the locals. Island of Happiness will also feature online competitive play via Nintendo’s Wi-Fi Connection.

Both Tree of Tranquility and Island of Happiness will prominently display 10th-anniversary-branded packaging, and Natusme will also be offering a line of collectible plushies as preorder bonuses at select retailers to honor the milestone.

Microsoft today announced a pair of promotions to support the launch of Lionhead Studios’ Fable II, one designed to save gamers money, the other to sap it away.

First off, those who preorder a copy of Lionhead Studios’ Xbox 360 role-playing game at participating retailers will gain free access to the Xbox Live Arcade release of Fable II Pub Games upon its release in August. The casino-style minigame compilation includes three games–Keystone, Spinnerbox, and Fortune’s Tower–as well as a tutorial to familiarize players with the rules. Whatever winnings are earned in the Pub Games will be transferable to the full version of Fable II, giving players a head start on the game’s rags-to-riches storyline.

Gamers who have no interest in Fable II but want to try their hands at its casino-style minigames will be able to purchase Pub Games for 800 Microsoft points ($10). The contents of Pub Games had originally been announced as separate XBLA titles, but will instead be made into a single download.

Microsoft also detailed a Fable II collector’s edition that will sell for $79.99. The extra $20 above and beyond the standard edition price will net particularly enthusiastic gamers a bonus disc with making-of content, a figure of the game’s Hobbe creatures, a trial Xbox Live Gold membership, and unspecified “additional in-game content.”

Released in 2004, the original Xbox RPG Fable put players in the shoes of a newly orphaned boy and allowed them to grow him into a force of good or evil. Fable II seeks to increase players’ ability to shape their characters, offering a wider variety of additional options regarding gender, marriage, children, property ownership, and more

As the unequivocal success of Activision’s Guitar Hero and MTV Games’ Rock Band goes to show, gamers like their music. It’s no surprise, then, that the Video Games Live concert series substantially expanded their reach in 2008, announcinga 40-stop world tour in January, with performances scheduled in locations across the Americas, Europe, and Asia.

Expanding that reach just a bit further, concert organizers announced a collaboration with Video Games Live and EMI Classics to release a best-of compilation through retail and online distribution channels. UK gamers will be able to purchase the 11-track Video Games Live: Volume One beginning today through iTunes and other online distribution providers, with a North American release following on July 24 and the worldwide debut slated for August 20.

Recorded and compiled at EMI’s Abbey Road Studios in London, Video Games Live: Volume One features performances from the Slovak National Orchestra, The Crouch End Festival Chorus, and The Video Game Pianist, Martin Leung. Medley’s play a particularly prominent role in the compilation, and ode’s selected to appear have been pulled from such hit franchises as Halo, Myst, Civilization, and God of War.

The complete Video Games Live: Volume One track selection is listed below.

“Kindgom” - Kingdom Hearts
“Warcraft Suite” - Warcraft series
“Myst Medley” - Myst series
“Operation Market Garden” - Medal of Honor: Frontline
“Civilization IV Medley” - Civilization IV
“Tetris Piano Opus No. 1″ - Tetris
“God of War Montage” - God of War series
“Advent Rising Suite” - Advent Rising
“Tron Montage” - Tron
“Halo Suite” - Halo series
“Castlevania Rock” - Castlevania series

It’s difficult to imagine any kind of dustup surrounding Hasbro’s popular wordsmith game Scrabble. However, that’s just what happened earlier this year when the gamemaker served social-networking hub Facebook with takedown notices for a widely used Scrabble clone application, Scrabulous.

Today, the reason for that legal wrangling has come to light, as Hasbro licensor EA announced its intention to offer its own free version of the classic board game to US and Canadian residents. The free edition of Scrabble is currently available through EA’s casual portal Pogo.com, and the publisher expects the Facebook app to go live later this month.

More than just a clone of a clone, Scrabble on Facebook will feature built-in chat and dynamic animations. The free app will also feature a real-time play mode or a pause-and-pick-up mode for up to two players where players can take turns at their leisure. Facebook denizens will also have access to prebuilt word banks.

The Pogo.com edition of the game can be played alone or in matches for up to four. In single play, the game offers five difficulty levels and a variety of rule sets. Pogo members will have the option to set up and participate in National Scrabble Association-certified tournaments, and be afforded a variety of boards.

As part of today’s announcement, EA noted that Scrabble is just the first of its Hasbro-licensed properties that will be made available through social-networking sites such as Facebook.