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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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MadKatBebop
MadKatBebop
14 years ago

Wow! that's some sh*t!

Alienange
Alienange
14 years ago

And we know who's ass it came out of.

www
www
14 years ago

And IW is the WC

Jawknee
Jawknee
14 years ago

Maybe a blessing in disguise. Craptivision is well…crap and maybe IW would do better in their own or with another, better publisher. .

johnld
johnld
14 years ago

i hope sony picks up infinity ward when the contract is up.

Dancemachine55
Dancemachine55
14 years ago

Fat chance.

Unfortunately, M$ has more $ than Sony, I wouldn't doubt THEY'D love to get their hands on Modern Warfare 3 as an exclusive. M$ did try to buyout EA after all, but EA loves being multiplat too much to agree with the exclusive deal.

Hopefully IW will feel the same and remain multiplat. However, having played BF BC 2 demo, Modern Warfare 2 is pretty crap in my eyes. A few awesome moments, but once their gone, that's it!!!

IW does deserve better treatment than this though. We here at PSXextreme have always known the truth!!! Activision is the devil who continue to beat a dead horse. Anything under their name has a big title with a lousy game underneath it. Might have something to do with how they treat their developers.

Akuma_
Akuma_
14 years ago

Infinity ward dont want to do anymore MW games

Alienange
Alienange
14 years ago

@ Akuma07 – Maybe if IW was seeing some of the royalties for MW2 then they'd be interested in a MW3?

JackC8
JackC8
14 years ago

This is almost as entertaining as the Jerry Springer Show.

coverton341
coverton341
14 years ago

Oh nuh-uh! No you dient just say dat bout my baby daddy.

photo K
photo K
14 years ago

DRAMA MAMA

SvenMD
SvenMD
14 years ago

Why did Coverton get a thumbs down?

Hitch
Hitch
14 years ago

For being stereotypical.

coverton341
coverton341
14 years ago

You know I could accept that if I had only seen one race go on Jerry Springer and act that way. Hell, I would even call myself an ass if that were the case but if you have ever seen the show, and unfortunately I have you know that anything and everything that graces that screen acts that way so, yeah I guess I was being stereotypical to the fact that everyone that is on Jerry Springer sounds like they crawled out of a first cousin relationship moment to have fifteen minutes of fame.

Karosso
Karosso
14 years ago

Come on Sony, go knock on their doors before MS does!

Nynja
Nynja
14 years ago

Interesting stuff. The other story I've collectively gathered from other publications think it may be related to breaking inside trading federal laws. Though, this seems more likely.

Epimetheus
Epimetheus
14 years ago

They could make an FPS game of this, sneaking around, espionage stuff, steal the hard drives, "get to da choppa" …

Natalisrubbish
Natalisrubbish
14 years ago

LOL!

fluffer nutter
fluffer nutter
14 years ago

I can totally here Arnold saying that, right now. LMAO

animalmother
animalmother
14 years ago

Ya i could see it now, Arnold is to protect I/W. They'll need it too because Carl Mayweather has been hired by Activision Private Military corp to bring in the I/W CEO.

spiderboi
spiderboi
14 years ago

And the bouncer dudes would be the semi-final boss. Kotick would be the final boss. He'd fling you all sorts of junk: from Guitar Hero , peripherals, DJ hero's and binding contracts with fine prints on profits for himself.

556pineapple
556pineapple
14 years ago

Maybe IW really is at fault here, but it doesn't seem like it. I guess it really doesn't matter anyway because my distaste for Activision is continually growing. I hope IW can get out of there.


Last edited by 556pineapple on 3/2/2010 11:48:43 AM

Mr Bitey
Mr Bitey
14 years ago

Bobby Kotick: Antichrist extraordinaire.

Just when you think Activision can't possibly stoop lower, they always do.

kraygen
kraygen
14 years ago

I gave u a thumbs up but i slightly disagree. I always think they can get worse because i truly believe they have a whole division dedicated to making themselves the deliverers of hell on earth.

Scarecrow
Scarecrow
14 years ago

lol!

Both Squeeeeenix and Activision are crashing
Karma doesn't mess around…

Dancemachine55
Dancemachine55
14 years ago

Have to thumb you down for that one.

Yes, Square Enix has made many "questionable" decisions lately, but they are no where near the same league as Activision.

Activision is the devil personified through a gaming company. All they see is $ in their eyes. They have no care or respect for gamers or developers, whereas Square Enix still kinda do.

But these companies have a long way to go to earn the same respect we give to Sony and Nintendo. Old Snake and Mario FTW!!!!

maxpontiac
maxpontiac
14 years ago

Sony needs to drop the money and secure Infinity Ward as 1st party developer.

Naughty Dog.
Guerilla Games.
Santa Monica.
Insomniac.
Infinity Ward??

Wow!

Karosso
Karosso
14 years ago

That sounds like a sure recipe for Xbot heart attach LOL

LividFiction
LividFiction
14 years ago

Actually, Insomniac is an independent developer.

Nynja
Nynja
14 years ago

Don't forget about Media Molecule

Evil Incarnate
Evil Incarnate
14 years ago

I would also like to add to your list

Zipper Interactive
Team ICO
Evolution Studios

Alienange
Alienange
14 years ago

I like the song you guys are singing.

Nynja
Nynja
14 years ago

Polyphony Digital

ace_boon_coon
ace_boon_coon
14 years ago

(drooling)

Dancemachine55
Dancemachine55
14 years ago

I'm sure Sony would be kind enough to offer them some leniency as to what kinda game they make. Doesn't have to be another Modern Warfare (although 1 more might be nice as a PS3 exclusive).

I can see Sony appealing to their good side with patience and freedom to create whatever they want. M$ sound like they'll beat more CoD's outta IW until it dies, much like what their doing to Bungie with Halo. M$ just keep offering companies more money to entice them to the land of the Red Rings. They have no soul, conscience or shame.

(eeew, just got an image of M$ being a child-thief who entices them with candy, while Sony is the police looking out for their safety. Nintendo is the playground the kids hang out at, hehe. The metaphor works far too well)

FullmetalX10
FullmetalX10
14 years ago

Damn, these peepz are in sum shady-ass business. But hey, that's what you get when you an swim in cash, your brain gets twisted in the wrong way…

0_o
0_o
14 years ago

Yep Sony have to make a move on this! Just imagine IW making a fps game just for PS3! I can guarantee PS3 sales will rise like crazy XD!! I think I drank alot of coffee!

Nynja
Nynja
14 years ago

O_o

Dancemachine55
Dancemachine55
14 years ago

We already got a PS3 exclusive shooter. Killzone!!!

IW would have one helluva time topping that, especially if they want to keep framerates high and splitscreen multiplayer in their games.

Brklynty1
Brklynty1
14 years ago

Wow just wow lmfao at activision. Yea of course activision. Let the developer company that brought you billions walk away. XD oh there's no worries because you have Treyarch? Lmfao! I doubt IW would want to be bought out by a console company like Microsoft and Sony because I'm sure they'd want as much money as they can get. But as for a publshier company, I can't really think of anyone at the moment. IW is just that good. Anywas you never know, october is still a long way from now, so they might reconcile. But if they don't, SONY I'm sorry, but you better use a mictosoft card and throw a blank check their way, CRUSH THE COMPETITION!


Last edited by Brklynty1 on 3/2/2010 12:37:05 PM

photo K
photo K
14 years ago

They should suck it up and work it out. Maybe the parties are both past that and have had enough of each other. too bad… hopefully the IW team sticks together somehow.

NiteKrawler
NiteKrawler
14 years ago

Infinity Ward/Activision/MW2 now officially hold the record for most controversies surrounding one group.

Alienange
Alienange
14 years ago

Be careful Blizzard, you're next.

___________
___________
14 years ago

meh, they can have blizzard.
they have released absolutely nothing in like what 5 years?
just milking the WoW cow to death, but than i guess thats moneyvisions company model.
diablo 3 for example it was suppose to be out last year, than this and now there saying not befor 2012.
just release the god dam thing already!
god, and i thought GT5 was taking its sweet time.

WorldEndsWithMe
WorldEndsWithMe
14 years ago

Break the eff away from Actiblizzard and Bobby Kotex! Make PS3 exclusives so your games don't suck. Problem fixed.

Hezzron
Hezzron
14 years ago

Did you guys hear that?….That was the sound of Activision stock crashing.

I also heard that Bobby Kotick likes to wear the skins of former developers as he parades around the Activision offices.

St_Jimmy
St_Jimmy
14 years ago

Bobby actually had a movie made about him.It's called silence of the lambs.

Geobaldi
Geobaldi
14 years ago

Actually, their stocks haven't really been affected that much. In fact they're up higher now than they were when they opened.

BadBrad
BadBrad
14 years ago

Everyone's missing the bigger picture here…if IW leave then Activision are screwed …why ? Because IW own the IP CALL OF DUTY…which would mean if they walk away …Activison wounld not be able to even release COD 7 XMAS time….it would be their biggest mess up ever…
Sony should buy them…then in 2 years time release…

Killzone 3 : The Call Of Duty !!!!!!!!!!

rogers71
rogers71
14 years ago

No, No, No… I believe IW owns the rights to Modern Warfare. Activision can make another Call of Duty, they just can't make another MW.

Doesn't bother me anyway, Treyarch's SP storylines are always better than IW's. IW gets the nod in MP but I don't bother with MP so keep em coming Treyarch. I will be happy.