Bobby Kotick, the former CEO of Activision Blizzard, is facing serious allegations linked to the company’s sale to Microsoft. He claims the deal, which was worth $69 billion, was necessary due to the declining performance of Activision and its iconic title, Call of Duty.
Investors, led by the Swedish pension fund Sjunde AP-fonden (AP7), argue that Kotick rushed into the Microsoft merger. They assert that the $95 per share price was too low and accuse him of manipulating the sale to protect his position and severance benefits, which amount to $400 million. Kotick denies these claims.
In his defense, Kotick points to a significant downturn in both the console market and Call of Duty sales. He notes that console sales have hit an all-time low and that Call of Duty’s sales dropped by over 60% compared to the previous year. This decline, he argues, justifies the merger with Microsoft.
Critics, however, point out that Kotick has not provided proof of this 60% drop. Recent data indicates that the latest installment, Black Ops 7, is struggling, and many gamers are questioning its performance. For instance, Call of Duty: Black Ops 7’s sales were below those of Black Ops 6 during its launch period, as reported by Circana. The gaming community is buzzing with skepticism about Kotick’s claims.
A quick look at recent statistics reveals a broader trend in the gaming industry. November 2025 experienced the worst video game hardware sales in the U.S. since 1995, with hardware spending down 27% year-over-year. Xbox Series and PS5 sales dropped significantly, with Xbox sales down 70%.
Kotick also addressed concerns from the U.S. Federal Trade Commission (FTC), which attempted to block Microsoft’s acquisition, arguing it would create an unfair market advantage. Kotick claims that the intense competition from other titles refutes this argument.
The changes in Activision’s strategy reflect an effort to rejuvenate the Call of Duty franchise. Significant shifts are on the horizon, such as not releasing back-to-back games under the same brand name.
Understanding these dynamics offers a glimpse into the challenges and transformations that not just Activision, but the entire gaming industry is facing today. With sales figures tumbling and competition growing fierce, the future of gaming remains uncertain.
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