Category Archives: Activision

Mark Pincus Grateful For Continued Existence Of Bobby Kotick

BOOM! HEADSHOT!

Bobby Kotick shows the class, grace and market acumen for which he is so justly renowned, when commenting on an imminent competitor for his corporation’s cash cow:

“We’ve been in business with Lucas for a long time and the economics will always accrue to the benefit of Lucas, so I don’t really understand how the economics work for Electronic Arts.”

He said that he does not think The Old Republic will steal users from WoW, adding, “If you look at the history of the people investing in an MMO and achieving success, it’s a small number.”

Yes, and clearly the largest game company on the planet, funding what is most likely the most expensive game project in history, would never qualify for that small number.

Oh Bobby, don’t ever change.

Kotick Can't Seem To Pay Anyone, Really

When you're worth half a billion dollars, it's never a bad day to stop sniffing glue.

Bobby Kotick loses lawsuit over refusing to pay legal fees for a sexual harassment suit.

In his ruling the arbitrator described Kotick’s approach to the Madvig case as a “scorched earth defense” and cited numerous statements allegedly made by the Activision CEO during his dispute with the former flight attendant.

Describing a May 2007 meeting with Abu-Assal and Cove’s chief financial officer, the arbitrator wrote that “Mr. Kotick wanted to destroy the other side and not to pay Ms. Madvig anything…. Mr. Kotick realized this was not a good business proposition, but said ‘that he was worth one-half billion dollars and he didn’t mind spending some of it on attorneys’ fees.’”

Apparently, he then decided later that yes, he did actually mind.

In September 2007, Glaser and Kotick discussed what he and Gordon, who were paying the legal bills, owed the law firm, according to a court filing. The next month, Kotick sent a check for $200,000 along with a letter that said it was full settlement of the firm’s fees and costs. Glaser disagreed, claiming that the total owed was slightly more than $1 million.

Kotick also displays some of his previously noted ethics and charm.

At a settlement negotiation with Madvig and her attorneys later that month, as described by the arbitrator, “Mr. Kotick said ‘he would not be extorted and that he would ruin the Plaintiff and her attorney and see to it that Ms. Madvig would never work again.’”

(hat tip: @leighalexander)

In Today's Update, Bobby Kotick Discovers Other People Can File Lawsuits

Employees of Infinity Ward file suit for unpaid royalties, claim they are “held hostage”.

Activision owes my clients approximately $75 million to $125 million dollars,” said Bruce Isaacs, one of the IWEG’s attorneys at Wyman & Isaacs LLP, over the phone this afternoon. “Activision has withheld most of the money to force many of my people to stay, some against their will, so that they would finish the delivery of Modern Warfare 3. That is not what they wanted to do. Many of them. My clients’ entitled to their money. Activision has no right to withhold their money — our money.”

Activision’s response:

Activision retains the discretion to determine the amount and the schedule of bonus payments for MW2 and has acted consistent with its rights and the law at all times.

The employees of Infinity Ward’s response:

Yep, within your legal rights. And we’re within our legal rights to cross our names off this list. (And it’s my understanding that there are more people who have left who aren’t yet reflected there.)

Bobby Kotick recieved over $50 million personally from the sale of Activision stock last year, for his work in destroying Activision’s second most profitable developer.

Activision's Legal Position On Infinity Ward: NO U

Well, then.

In a lawsuit that read more like a dramatic Hollywood script, Santa Monica-based Activision claimed it fired Jason West and Vincent Zampella in March because the two “morphed from valued, responsible executives into insubordinate and self-serving schemers who attempted to hijack Activision’s assets for their own personal gain.”

EA, when asked to comment:

We don’t have the time to comment on the many lawsuits Activision files against its employees and creative partners.

So there you go!

Activision: Moving From Sucking All The Fun Out Of Development To Actually Killing Your Dog

Pretty much everyone I know is talking about Activision’s incredible achievement of taking the studio that made them over a billion dollars into a back room and shooting it in the head.

Today West and Zampella, the two studio heads unceremoniously escorted out of the studio they created by, apparently, rented goons, had their say, through the filter of lawyers. Except… well… it wasn’t that filtered.

Activision conducted the investigation in a manner to maximize the inconvenience and anxiety it would cause West and Zampella. On little notice, Activision insisted on conducting interviews over the President’s Day holiday weekend; West and Zampella were interrogated for over six hours in a windowless conference room; Activision investigators brought other Infinity Ward employees to tears in their questioning and accusations and threatened West and Zampella with “insubordination” if they attempted to console them; Activision’s outside counsel demanded that West and Zampella surrender their personal computers, phones, and communication devices to Activison for review by Activision’s outside counsel and, when West and Zampella asserted their legally protected privacy rights, Activisions counsel said that doing so constituted further acts of insubordination.

If Activision’s executives, on-staff lawyers and rented goons wanted to, say, LARP being the caricature of the most brutal power-mad clueless management possible, this would be a really good way to do it.

Except that – they really did that. (You know, assuming that West and Zampella, through their lawyers, aren’t outright lying. Which I kind of doubt. Too much detail and all that.) Let that sink in a moment. Activision took one of the linchpins of their company, the studio that produced one of the best selling games of all time, and strongarmed them like a bunch of Mafia punks shaking down the local grocer for protection money. This is how they rewarded people who earned them over a billion dollars.

I’ve already said in a column for MMORPG.com how this affair shows the dysfunctional nature of the relationship between publishers and developers, and how setting them up as mutual antagonists ensures that no one is effective. I wrote this before the documents that West and Zampella filed came out. At that time, I was willing to assume that Activision wasn’t evil, merely part of – and a key component in – a system that was failing.

I’m not willing to make that assumption any more. That sort of fascist hardball isn’t done by people with a moral compass. And given the lack of ethics that sort of conduct broadcasts, it makes it easier for me to believe West and Zampella’s core argument – that Activision’s hostile takeover of Infinity Ward (and that’s what it is, with an efficiency that would make the expropriators of Yukos Oil blush) was motivated simply by a desire to not pay the makers of Modern Warfare the money they were owed. Apparently, Activision decided it was cheaper to destroy the studio and entangle its founders in legal tar. Something they anticipated in their 10-K SEC filing:

The Company is concluding an internal human resources inquiry into breaches of contract and insubordination by two senior employees at Infinity Ward. This matter is expected to involve the departure of key personnel and litigation. At present, the Company does not expect this matter to have a material impact on the Company.

Which, it is important to note, was written and filed before West and Zampella were fired.

Bobby Kotick, Activision’s CEO, a man with no interest in games save as methods of exploiting profit, who began his career as someone who rented out nightclubs, and couldn’t understand why anyone would go to them, is already on record as saying:

 

“The goal that I had in bringing a lot of the packaged goods folks into Activision about 10 years ago was to take all the fun out of making video games.”

 

“We are very good at keeping people focused on the deep depression.”

The games Activision Blizzard didn’t pick up, he said, “don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises.”

Surprisingly, this does not engender a lot of loyalty among people who, you know, don’t see gaming as a packaged good created by frightened line workers so that it can be exploited on a yearly basis. So I guess that would explain the whole lawyers, goons, and lack of money thing.

And this is where the recession comes in – it works in Kotick’s and Activision’s favor, at least until now. When jobs are scarce and companies closing their doors regularly (EA laying off workers the day Activision shot Infinity Ward in the head, coincidentally enough), you don’t have the luxury, often, of having the courage of your convictions.

Yet, I have to believe that given two founders, who while everyone would admit are wildly egotistical, still have every reason to be and have worked for the interests of their team members, unceremoniously ejected and replaced by “packaged goods” functionaries so that the studio could be overseen by a “business unit” – at some point, the people in the trenches have to realize that no amount of job security is worth that.

Or maybe we really are just packaged goods, waiting to be exploited on a yearly basis.

For more notes on the situation see Dave Taylor and Jake Simpson. I’m sure there will be more. I can’t think of any developer who isn’t violently outraged at how this is developing.

Gaming Industry Blows Up

While I was at a party frightening everyone to the core with my Rock Band-fueled vocal rendition of “Flirting With Disaster”, apparently forces were in motion.

Item: EA is no longer the biggest dog in the playground. It looks like Activision and Vivendi-Universal Games’ management has merged, and taken Blizzard’s name, because, well, hey, wouldn’t you? No idea what impact this will have on, well, anything. Heck, EA still hasn’t fully digested Bioware/Pandemic, and now this. Some days I’m glad my soul is kept in a Korean jar safely away from all this buyout mania.

Item: Gaming journalism blows up. Apparently Jeff Gerstmann was fired for Reviewing While Honest. Call it Kanegate. Or Lynchgate. Or Kaneandlynchgate. Depending on how you remix the Gamespot website ads! What may (or may not!) be a Gamespot editor leaks all about it to Valleywag and in response, 1UP pickets Gamespot. I’m pretty sure I can’t make any of this up, which means I don’t have a future in corporate gaming reviews.

And y’all damn sure know what I mean. Whop-bop-a-loo-bop.