Paramount Pictures is facing a lawsuit from the estate of Mario Puzo over money owed from The Godfather video games.

It is claimed that the studio owes it at least $1 million in revenue from a breach of contract signed between the author and Paramount.

The Hollywood Reporter says that in 1992 the contract gave Paramount licensing rights for anything that embodied the Godfather saga. Anthony Puzo, the author's son and representative of the estate, claims that the video game is covered in the agreement.

Electronic Arts (EA) has announced that over 100 million copies of computer game The Sims have been sold worldwide.

Since the first version of the game was released in 2000, the franchise has expanded to be sold in 60 countries and in 22 languages.

Rod Humble, head of studio for The Sims label, announced: "We want to thank players of The Sims everywhere for making The Sims such a worldwide phenomenon."

The chief executive of Electronic Arts believes that video games are as important as movies.

John Riccitiello, in an interview with the Financial Times, said: "There is more interest today from Hollywood to make movies out of our games than there is interest in our industry to make games out of their movies. There's a big reset happening now."

He also revealed that "Hollywood folks" are concerned that "Iron Man the movie is going to get killed by Grand Theft Auto the game".

Electronic Arts (EA) has announced an extension to its deal with Microsoft subsidiary company Massive to supply in-game advertising to EA titles.

The deal will include a range of Xbox 360 and PC games for the next two years including the latest editions of the Madden NFL, NBA live, NASCAR and NHL franchise of games.

Kathy Vrabeck, president of the Casual Entertainment label at EA said: "We selected Massive because they are the industry leader in this space with a global sales footprint, solid brand recognition and in-depth experience in video game advertising."