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Activision/IW Snafu: Royalty Issues, Breach Of Contract

This so deserves a separate headline just because it's a colossal giant mess with tons of intrigue and drama.

We're still not entirely sure what happened between Activision and Infinity Ward but at the very least, we know it was a falling out of some kind. Last night, we learned that IW bosses Vince Zampella and Jason West never returned from a meeting with Activision; after which, some "bouncer types" showed up at IW and really freaked everyone out. Well, now it seems that both Zampella and West have been fired and there may even be a lawsuit that follows. Why? Like we said, it's a mess. You may want to read through the updates over at Binge Gamer , because there's a lot to go over. Firstly, it seems the developers haven't received any royalties for Call of Duty: Modern Warfare 2 yet; a game that has earned Activision over $1 billion in revenue thus far. Maybe it's just a contractual thing and IW isn't supposed to receive any royalties just yet, but we can't be sure. Secondly, although Activision owns Infinity Ward, the development studio is technically autonomous; they're merely held in place by a contract that expires in October. The problem seems to revolve around the Call of Duty franchise: Activision may want the rights to the name but Infinity Ward holds them. If IW doesn't want to do a Modern Warfare 3 , Activision probably does and needs another developer…hence, they need those rights.

The last part is downright nasty- according to recent SEC paperwork filed by Activision, there were "breaches of contract and insubordination by two senior employees at Infinity Ward." An inside source believes IW may have been in talks with a "rival publisher," which is likely the breach Activision is claiming. Interestingly enough, come October when the Acti/IW contract dissolves, Infinity Ward could hire Zampella and West back. Maybe they'll just take a little vacation for now…? Anyway, we're certain there's more to this story but we'll let it lie for now until either party comes forward with something official.

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sunspider13
sunspider13
14 years ago

Wow…so some of the pieces fall in place now. Can't wait to hear more.

GuernicaReborn
GuernicaReborn
14 years ago

F— Activision.

St_Jimmy
St_Jimmy
14 years ago

well said brother.

Oyashiro
Oyashiro
14 years ago

You keep staying classy Activision.

ace_boon_coon
ace_boon_coon
14 years ago

lol lol lol activision has no class. they're barbarians.

Banky A
Banky A
14 years ago

Ron Burdandy's got class. He's non barbarian, he's an Anchorman.

SvenMD
SvenMD
14 years ago

I think the best part about this Activision/IW scandal is that it quickly took the press off of the minor PSN downtime.

Perfect timing Activision!!

Gotta love scandals.

SSRGohan
SSRGohan
14 years ago

who was this "rival publisher"??? I wonder

OtisFeelgood
OtisFeelgood
14 years ago

Probably EA. ;x

Nynja
Nynja
14 years ago

You misspelled that…

try; SCEA

OtisFeelgood
OtisFeelgood
14 years ago

Haha.

kraygen
kraygen
14 years ago

Maybe I missed something but can someone clear this up for me. If as Ben says Activision does not own IW, but merely has them under contract until october, then how could Activision fire the heads at IW?

On another point, all IW is know for is shooters and if they do in fact part ways to start a new IP, i for one pray that it is not a shooter. Then we can really determine how good of a developer they are.

Ben Dutka PSXE
Ben Dutka PSXE
14 years ago

The contract gives Activision that kind of control, apparently.

Nynja
Nynja
14 years ago

What about Polyphony Digital? They only make racing games. Does this mean we cannot determine how good of a developer they are until they do a different genre?

Oyashiro
Oyashiro
14 years ago

PD also made Omega Boost for the PS1, and it was awesome.

Wage SLAVES
Wage SLAVES
14 years ago

Yeah, cuz Michael Jordan was the best basketball player until he played baseball to show us…he wasn't the best basketball player.

If your good at something why change unless your creativity is absolutely driving you there?

kraygen
kraygen
14 years ago

@Nynja

Actually Polyphony made a game called omega boost which i've never played but psx gave an 8.9 review, others not so nice a score but anyway they have done other things. On the other hand i find racing games much more interesting than shooters.

My earlier comment was just me showing my anti-shooter bias really. =)

Miggy
Miggy
14 years ago

Ben says that the studio is technically independent given their contract but Activision actually does own them. I'm guessing Activision owns IW until their contract is up or something like that. That's what I deducted from that statement anyways; I could be wrong.

Nynja
Nynja
14 years ago

@Oyashiro & Kraygen

Tuche.


Last edited by Nynja on 3/2/2010 3:42:16 PM

sunspider13
sunspider13
14 years ago

@Oyashiro

Right on! Omega Boost was a great game. Now what if PD brought that to the PS3?

*crosses fingers*

FxTales
FxTales
14 years ago

Just sounds like good old greed on Activision's part.

Wage SLAVES
Wage SLAVES
14 years ago

!!!!BOYCOTT ACTIVISION!!!

Take the fun out of video games, yeah take the $ out of your pockets, pricks!

Funny thing is makes you wonder what all that exclusive Xbox 360 and supporting M$ off at E3 last year….

Wanna speculate that they were about to jump into bed with M$, they did say that they did the special console because they had such a good relationship with M$…

Nynja
Nynja
14 years ago

Now that you mention that… I wonder if the other publisher was Microsoft. Think about it.

IW does seem to favor the 360 system. Exclusivity deals on DLC, bundles, advertising. Microsoft would absolutely love to get IW's new IP as an exclusive on the 360 to battle it out with Sony's onslaught of upcoming exclusives. Obviously Activision won't have that because that would lower their target customer base in half. Sure less money for Activision, but as long as IW stays with them, we'll continue to get more games on PS3.

If this were the case, would we all be bashing Activision still? Or would the tide turn against Infinity Ward?

Just a thought.


Last edited by Nynja on 3/2/2010 3:48:03 PM

Jed
Jed
14 years ago

I would like to see IW set free to work on other stuff that they want to do, instead of being Activision's COD slaves. While I'm not a big fan of the online stuff, it's easy to see that IW has a whole lot of potential to do more than just MW.

Whatever happens, I would be cool with it as long as Activision looses money.

www
www
14 years ago

I knew it! I'm pretty sure its something to do with making moves with a rival publisher, that could be EA, these guys wanted a whole publisher like Take-Two badly, not even the studio Rockstar, how much more IW.


Last edited by www on 3/2/2010 3:36:21 PM

rogers71
rogers71
14 years ago

IW needs to jump aboard that MMO FPS train and ride it till the wheels fall off. The SP on all their games are just run of the mill.

Deny it all you want but IW just can't make a game with any kind of story line.

Alienange
Alienange
14 years ago

Ok. I'll be the first to deny that. The two Modern Warfare games have the best single player FPS stories to date. They are gripping, harrowing, and down right brutal. Nobody turns away from the screen when MW is on.

___________
___________
14 years ago

no all COD games have the worst stories to date.
could not understand what the ^%$# was going on in MW2, and there pathetic attempt of shock and awe just proves how desperate and pathetic they are.
IW may know how to make a fantastic online game (thats why its so buggy and full of hackers) but when it comes to single player stories, even rebellion have them out pegged!

rogers71
rogers71
14 years ago

@Alienage,
Why does it not surprise me that we once again disagree. The story in World at War far surpasses either MW game for character immersion and story path.

IW puts you into a battle with person "A" and then the next level is person "B". There really is no story connecting the levels.

Whereas, WaW made you get connected with and care about the characters you were portraying. You actually feel some modicum of danger when playing and you actually fear for the character.

You know as well as I do that IW puts their MP before all other aspects. Give me a Resistance, Killzone or a Treyarch developed COD any day over IW's watered down SP campaign.

BikerSaint
BikerSaint
14 years ago

Just IMO…..
According to all the many sources I've seen so far, Anti-vision has controlling rights to IW, but only till around August I believe, when their contract ends.

And IW partly owns the name "MW", so there's nothing kotex can do about it, other than flexing his muscles like he's just done before IW walks away.

The way I see it, this is Kotek's way of bullying the remaining IW little guys…….
1. by holding their royalties for ransom until they either starve, or cave-in to all of his demands.

2. by firing the 2 IW bosses while he was still able to do so, in a show of force to scare IW into either, re-signing before the contract expires, or to get IW to relinquish their rights & ownership of the name "MW" before they walk.

Kotek "WILL" do everything he can to make life at IW even more unbearable until either August rolls around, or he's gotten his way.
So I hope for IW's sake that they can hold out till August, and once they're free of the maniacal ruler, they can show him what "REAL PAYBACKS are all about. Plus, they can re-hire their 2 fired bosses right back too.

Come on Sony, here's the chance to give kotex a good karma lesson for all of his prior a$$inine demands that you lower the PS3 price.

And Sony…..with just 1 fell swipe of your mighty pen, you can even put MS in it's place at the very same time!!!!

So now you need to bringing on your AAA game & step it up…….breaking out the cash and contracts, and have both ready for an August signing!

___________
___________
14 years ago

wait so activision refuses them royalties and the IW guys get fired?
activision breaks the contract and IW get punished?
sounds like there getting fired for being disloyal since when is that reasons to be fired?
if i was them, id be suing activision for unfair dismissal and early termination of contract.
thats what my boss tried to do with me, and i got him into a heap of sh*t because of it, bastard was not paying me super or overtime either.
thats what happens when you play with fire, YOU GET BURNED!

Nynja
Nynja
14 years ago

Latest rumor is that Activision is struggling with failing sales of Guitar Hero 42, Tony Hawk 56, and DJ Hero. They have already laid off employees at Neversoft and closed Red Octaine's doors. Activision wanted West to layoff employees at Infinity Ward and they refused thus leading to allegations of "insubordination" and breach of contract.

It would not surprise me if West and Zampella walked in attempt to save the jobs of their employees or simply pride.

Man I cannot wait to hear the actual facts of what had happened. One thing is for sure, Activision is the new "EA" and in my book can go suck a big fat Kodick.

Until the truth is revealed (if ever) I will never buy another Activision published game.

Boycotting begins now.


Last edited by Nynja on 3/3/2010 8:20:40 AM

BikerSaint
BikerSaint
14 years ago

With ya there, Nynja!
Also boycotting kotex & antiChrist-vision!

SnipeySnake
SnipeySnake
14 years ago

Good, i hate IW and Activision.

stemon
stemon
14 years ago

IW have made it clear they dont wanna do MW IP, MW2 campaign is silly short that to me says the devs cant really do what they want to do and are being told to just to MP.

shootu
shootu
14 years ago

@___________ STFU you are the biggest dumbass!