col Have accounting scandals hit the video-game industry? Government officials are challenging revenues reported by Acclaim, Activision, Midway and THQ. Similar challenges made last year to Take-Two Interactive forced the company to restate nearly two yea

If you think $180 is too much to pay for a PlayStation 2, just wait a few months. An industry analyst said this week that price cuts to the PS2, Xbox and GameCube are "likely" this fall. The analyst said cuts will be necessary if companies want to reach their sales goals.

Sega announced an ambitious goal this week. New president Hisao Oguchi wants to double the number of games Sega sells next year. To that end, Oguchi has challenged his employees to create games that are vibrant, yet accessible to the casual gamer.

Guess how many people have bought an Xbox. If you guessed 9.4 million, you're right. According to new statistics released by Microsoft, there are 6.2 million Xboxes in North America. Another 2.2 million are in European countries, but there are only 1 million across Asia.

Cellular phone giant Nokia is getting into the gaming business this fall. The company will start selling its N-Gage phone-and-game machine for $300 on Oct. 7. Games planned for the N-Gage include "Splinter Cell," "Rayman 3" and multiple sports titles.

Digital Watch is a weekly feature that relays news from the video game industry. Items presented here are gathered by the writers of Digital Playground.

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