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NYC Suit: Beyonce Backs Out Of Video Game Deal

Posted on April 27th, 2011
by
Karen


Video game developer Gate Five is suing Beyonce Knowles for over $100 million in profits lost when the pop star dropped out of an agreement to develop a game, Starpower: Beyonce, based around her persona.

According to a court summons obtained by New York magazine [PDF], the little-known Gate Five formed a joint venture with Knowles’ Beyonce Inc. last June to develop the game. Allegedly Knowles demanded more favorable compensation terms “at a crucial moment in the project’s development,” driving away the game’s financing before pulling out of the project in breach of the original agreement.

As a result, Gate Five says more than 70 employees were put out of a job the week before Christmas. The company is seeking to recover $6.7 million in direct investment in the project, as well as over $100 million in potential profits from the title.

The summons to appear before a New York City court in the next 20 days promises a more detailed complaint to be filed after a confidentiality issue with Knowles can be worked out.

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