BACKGROUND
Infinity Ward was originally founded after the core team behind the Medal of Honor series left EA because the publisher wanted to milk the franchise. The Los Angeles-based studio has created some of the best first person shooters of the past decade, including Call of Duty, Call of Duty 2, Call of Duty 4: Modern Warfare, and Modern Warfare 2. As parent company and publisher Activision has begun capitalizing on the Call of Duty franchise by using multiple studios to develop the games (the other being Call of Duty 3 and Call of Duty: World at War developer Treyarch) tensions have risen between them and Infinity Ward. Last year, IW reportedly even refused to let Activision check up on Modern Warfare 2 milestones; the game itself has since become the most succesful entertainment property of all time. In addition, Infinity Ward had negotiated a contract with Activision to retain creative control over post-Vietnam era Call of Duty games as well as secure a go-ahead to develop a new IP.
WHAT'S GOING ON NOW
Reportedly, Activision had suspected Infinity Ward President Jason West and CEO Vince Zampella of engaging in secret talks with a rival publisher (EA has been named in court documents) to leave the Activision-controlled studio and start a new indie house. Earlier this week, West and Zampella had been called into a morning meeting with Activision brass and had been missing for the rest of the day. By nightfall, it had been revealed through Facebook and LinkedIN that West and Zampella had been let go of. Meanwhile, the same day Activision had quietly filed an SEC Report saying that two employees had been found "in breach of contract" and fire for "insubordination" by the publisher.
The following day, Activision CEO Bobby Kotick met first with the remaining Infinity Ward leads, followed by a second meeting with the entire studio. After the meetings, the company released a statement confirming the departure of West and Zampella and revealing the future of the Call of Duty franchise. Per everyone's expectations, this fall will see the release of a new Call of Duty game from Treyarch (rumored to be set in either Vietnam or the greater Cold War). In addition, newly founded Sledgehammer Games (established by former Dead Space boss Glen Schofield) is preparing an "action-adventure" Call of Duty game for 2011. An internal memo also claimed that Infinity Ward was still "central to the franchise" and hints were that the Sledgehammer project was separate from the "main" 2011 Call of Duty (or Modern Warfare) game.
THE FALLOUT
Activision likely wanted to keep cashing in on Infinity Ward and was pushing the studio to either do Modern Warfare 3 or the subscription-based Call of Duty that has been rumored for months already. IW likely pushed back, wanting to move in a new direction, such as developing their promised new IP. Past examples of (proverbially) bloody departures by studio heads usually lead to the departure of several key staff as well, so don't be surprised if people start leaving Infinity Ward once West and Zampella announce what they will do next.
In the mean time, Zampella and West have followed a lawsuit against Activision that has tremendous implications for the Call of Duty and Modern Warfare brands. Firstly, they demand in excess of $36 million of Modern Warfare 2 royalties be paid to them; Activision would have paid these this month if their employment had not been terminated. The pair accuses Activision of themselves "breaching contract" among a few other allegations (read the entire court filing here). They also are seeking to regain control of the Modern Warfare brand, defined as any Call of Duty in the post-Vietnam era. Activision in turn has said they are "disappointed" by the lawsuit, calling it "meritless". It'll likely take some time for the legal process settles this one, but we'll be keeping an eye on the situation and keep you updated on what happens.
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