Ok i swear this will be the last time I bring up Watchmen for a while, but in conjunction to my last blog it would appear some of you were right! The games will be prequels. Im guessing they will take place during the Vietnam war and the spirit of 77. So yeah, maybe the games can be good. I still however remain skeptical. 

http://kotaku.com/5028465/watchmen-games-are-prequels

:EDIT:

So the game will take place right before the kneene act in the famous police strike riot known as the spirit of 77. 

here is some much better info

http://www.gamepro.com/microsoft/xbox360/games/previews/205627.shtml