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.

  • sinij

    They are now well underway into Step #2 of Kotick’s business plan, #3 Profit! can’t be that far away.

  • Iconic

    I wonder if Activision will actually fight this out all the way, or if they will settle.

  • Gx1080

    We are in the land of the out-of-court settle, Iconic.

  • Blake

    I know it probably won’t happen but I’m kinda hoping that the majority of the studio leaves.  Though, as I’m sure we’re all aware, the majority of the unwashed gaming masses are clueless as to who makes the games or what studio is involved … just the franchise name.

  • http://geldonsgaming.blogspot.com geldonyetich

    I’m sure Kotick knows what he’s doing.

  • Jeff

    Modern Warfare 3 is probably going to suck the nether regions of a motherless goat. The bright light is that after all of this legal business is attended to we might be able to expect some sort of kick ass lawyer sim game.

  • Flimgoblin

    Related news: Mark Griffith steps down as CEO/president of Activision
    http://www.mcvuk.com/news/38734/Griffith-relinquishes-Activision-role

  • Zuzax

    Looks like someone’s public statements about how to “take all the fun out of making video games,” creating cultures of “skepticism, pessimism, and fear” and “keeping people focused on the deep depression” may come back to haunt him.
    Or at least cost him.

  • http://www.whysohostile.com Cymbaline

    Zuzax: Looks like someone’s public statements about how to “take all the fun out of making video games,” creating cultures of “skepticism, pessimism, and fear” and “keeping people focused on the deep depression” may come back to haunt him. Or at least cost him.

     
    Cost him? After he raked in $50M this past year alone from stock alone?

    Look, I hate to be the one to break this to you, but nothing will ever really “cost” American Nobility C*Os in the sense that you and I and normal people use the word “cost”. Nobility plays by different rules than you and I, and suffer vastly different consequences than you and I. Namely, none.

    If worse comes to absolute worse for Kotick, Activision will lose the suit for $500M, Kotick will get fired, and Activision will burn. Kotick will not have to pay anything as a result of losing the suit, he’ll probably get paid for getting fired, in the seven or eight figures, and then he’ll go onto a new job where he does the same thing all over again, because stock rose by five points during some six month portion of his tenure at Acitivision. If Activision stock prices take a hit, or (impossibly) disappear completely as a result of his slash-and-burn management, it’ll cost him in the same way that it costs me $190M when I don’t win the lottery. He’s already cashed out at least fifty million fucking dollars at what may be the apex of Activision’s financial status during his watch. Fifty million dollars, last year alone, from stock alone.

    That is a “cost” that I think he will gladly pay every time. Welcome to the world of modern American corporate life.

  • Zuzax

    Cymbaline:   Cost him?After he raked in $50M this past year alone from stock alone? Look, I hate to be the one to break this to you, but nothing will ever really “cost” American Nobility C*Os in the sense that you and I and normal people use the word “cost”.Nobility plays by different rules than you and I, and suffer vastly different consequences than you and I.Namely, none.If worse comes to absolute worse for Kotick, Activision will lose the suit for $500M, Kotick will get fired, and Activision will burn.Kotick will not have to pay anything as a result of losing the suit, he’ll probably get paid for getting fired, in the seven or eight figures, and then he’ll go onto a new job where he does the same thing all over again, because stock rose by five points during some six month portion of his tenure at Acitivision.If Activision stock prices take a hit, or (impossibly) disappear completely as a result of his slash-and-burn management, it’ll cost him in the same way that it costs me $190M when I don’t win the lottery.He’s already cashed out at least fifty million fucking dollars at what may be the apex of Activision’s financial status during his watch.Fifty million dollars, last year alone, from stock alone.That is a “cost” that I think he will gladly pay every time.Welcome to the world of modern American corporate life.

     
    What it will cost him is the rub to his ego that he lost and had to pay – sort of like Mortimer and Randolph’s $1 bet. It’s the winning or losing, which is something that all his personal compensation can’t change.

    As far as how those sorts of fuckers take care of themselves – I used to work at Enron, which is like a graduate course in the machinations you’re trying to explain, so I realize fully that (unlike Randolph and Mortimer) he won’t be destitute within his our our lifetimes.

  • joker

    You never know, someone could always pull a Milton.

  • hitnrun

    Gx1080: We are in the land of the out-of-court settle, Iconic.

     

    You’d think so, but if that were the case, simply paying the bonuses would have been a lot cheaper than letting it get into the hands of lawyers.

  • http://www.antipwn.com/blog/ IainC

    And now Bungie is filling the FPS shaped hole that IW left behind them
    http://www.bungie.net/News/Blog.aspx?mode=news#cid25920

  • doubleD

    Very sad to see fantasyland ruined but cuthroats for a buck.

  • bob_d

    The question is, does Kotick even care that a development studio is being gutted?  He’s all about the assembly-lining of game production and I’d imagine that as far as he’s concerned, the IP is far more important than the talent behind it.  It seems like the IP is usually prized as the moneymaker, rather than the team (and sadly, this probably has a fair amount of truth for established IPs, at least in the short-term).

  • http://geldonsgaming.blogspot.com geldonyetich

    bob_d: The question is, does Kotick even care that a development studio is being gutted?

    I’m sure a businessman such as himself only cares if it influences what’s in his wallet.  Like anyone else who lives to wield as much of the almighty dollar as possible, he looks at the destruction of Infinity Ward as a minor setback, at best.

    If I was working at Bungie right now, I’d probably be only mildly perplexed that there seems to be resumes on every company printer.

  • Brask Mumei

    A reminder that if someone retains the discretion to determine the amount and schedule of your royalty payments, then those royalty payments don’t exist.
    Do those holding onto the jobs hoping for this carrot actually expect Kotick to pay up when the time comes?  Never – he’ll either fire you or summarily redefine the payout another 3 years in the future.  Or both for good measure.

  • D506

    bob_d: The question is, does Kotick even care that a development studio is being gutted?  He’s all about the assembly-lining of game production and I’d imagine that as far as he’s concerned, the IP is far more important than the talent behind it.  It seems like the IP is usually prized as the moneymaker, rather than the team (and sadly, this probably has a fair amount of truth for established IPs, at least in the short-term).

     

    The answer is: of course not. And why should he? Every member of the original studio can be replaced. Sure, the new team might not have the creativity and vision that got the first title off the ground, but they’ll certainly capable of creating the sequel the fans want – that is, the same game with some minor tweaks and graphical changes. Fact of it is, there are plenty of very intelligent, talented would-be developers just itching for a chance to work in the industry – let alone on such a high profile game. Until we start as consumers start to demand, en mass ,quality and creativity in the games we buy then we simply won’t see it.

  • ToeJob

    D506:
     
    The answer is: of course not. And why should he? Every member of the original studio can be replaced. Sure, the new team might not have the creativity and vision that got the first title off the ground, but they’ll certainly capable of creating the sequel the fans want – that is, the same game with some minor tweaks and graphical changes. Fact of it is, there are plenty of very intelligent, talented would-be developers just itching for a chance to work in the industry – let alone on such a high profile game. Until we start as consumers start to demand, en mass ,quality and creativity in the games we buy then we simply won’t see it.

     

    This twice

  • Brask Mumei

    D506: You are quite right.  Which raises the question of WTF they’d ever want to *force* IW to make MW3.  The smart money would be to give IW the ability to make a new IP and farm off MW3 to someone else to milk to death.
    Mind you, the text of the lawsuit suggests IW had to fight tooth and nail to be given the freedom to make MW in the first place as Activision rathered they keep producing COD sequels.  But you think they’d have learned that IW is an IP generating studio, not a an IP milking studio.

  • Iconic

    “Mind you, the text of the lawsuit suggests IW had to fight tooth and nail to be given the freedom to make MW in the first place as Activision rathered they keep producing COD sequels.  But you think they’d have learned that IW is an IP generating studio, not a an IP milking studio.”
    Bobby Kotick didn’t get where he is by understanding talent or creativity.  He understands how to churn things so that the numbers go up immediately.  Long term, his vision is to use the money he made to buy another up and coming studio that can’t afford to publish its own work.  Why make your people happy when you can scare them into compliance then just buy some more people?

  • Please

    The world was a better place when MW stood for Mech Warrior.

  • Rubylite

    Activision are assholes. EA are assholes.
    Every big gaming corporation are assholes.
    No.
    Every big corporation are assholes.
    Why?
    Because core principles don’t matter. The bottom line is all that counts.
    Welcome to corporate America: Where the lives of the little people dont matter as long as we raise profits.