In an effort to “foster creativity and innovation,” publishing juggernaut Activision has launched a competition inviting indie game developers to submit their idea for a shot at winning a cash prize. Eligibility is open to those based in the US and extends to projects still in the concept or prototype stage.

Scheduled to run through August 31, phase one of the competition kicks off today, offering up first and second place prizes valued at $175,000 and $75,000 respectively. Details on phase two are forthcoming, we’re told. Winners will be announced in October 2010.

According to the fine print, in order to qualify as a finalist entrants must sign documentation that grants Activision the “first right of refusal to sponsor for any development of or publishing of submission.” An entry form, along with additional details can be found over at the official sweepstakes page.

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