Activision and Infinity Ward Problems

http://www.gamespot.com/news/6252657.html
http://www.gamespot.com/news/6257485.html?om_act=convert&om_clk=newstop&tag=newstop%3Bstory%3B19
http://www.gamespot.com/news/6257676.html?om_act=convert&om_clk=newstop&tag=newstop%3Bstory%3B11
http://www.gamespot.com/news/6257753.html?om_act=convert&om_clk=newstop&tag=newstop%3Bstory%3B1

For those of you that aren't as interested in video games as I am, Activision (owned by Blizzard) is one of the largest game-producing companies in the U.S. They're a multi-billion dollar company with such hits as the Guitar Hero/DJ Hero series, the Tony Hawk series, and the Call of Duty series. Infinity ward is a production studio owned by Activision. Infinity Ward is the studio responsible for the Call of Duty franchise, which has accounted for over $3 billion worth of sales since the first Call of Duty was released in 2003.

The problem that Activision finds itself in now is a staffing one. Activision recently fired Infinity Ward's two top producers: Jason West (President of Infinity Ward, co-COO, and game director), and Vince Zampella (CEO and co founder), stating the reasons for doing so are "insubordination," and "breaches of contract." Activision and these two men are now locked in a legal battle over, with both sides suing.

Financial experts said that these two men leaving wouldn't make that much of a difference to Infinity Ward's bottom line, as long as no more of the company's leadership leaves with them. However, West and Zampella just announced that they have been hired by rival video game publisher Electronic Arts. A day after this announcement was made, three more Infinity Ward employees left - Design lead Mackey McCandlish, senior animator Bruce Ferriz, and programmer Jon Shirin.

While they haven't announced any intention to join the new publisher at Electronic Arts, it is likely this will happen soon.

What do you think? Is Activision imploding; losing many of the top people responsible for their largest-selling franchise to their direct rival? Can Activision afford to do this, especially with the economy like it is and video game sales dropping? Remember, the video game is still very much hits-driven; and the Call of Duty franchise is already an established hit.