Kotick Cites 60% CoD Crash to Justify $69B Acquisition
In recent statements regarding the acquisition of Activision Blizzard King by Microsoft, Bobby Kotick cited a significant decline in Call of Duty sales as a rationale for the $69 billion merger. According to Kotick, sales have plummeted by over 60% compared to the previous year, suggesting that the timing of the deal was advantageous.
Bobby Kotick and the $69 Billion Merger
Bobby Kotick, the former CEO of Activision Blizzard, oversaw the company’s operations as it moved forward with the controversial sale to Microsoft. A Swedish pension fund, AP7, alleged that this decision was prompted by Kotick’s desire to shield himself from the legal ramifications of ongoing scandals within the company.
- AP7 claims Kotick expedited the merger to avoid legal issues.
- They seek compensation for shareholders and challenge the legality of the deal.
The Lawsuit Details
The lawsuit against Kotick was filed in Delaware’s Court of Chancery in 2022. It contends that Kotick prioritized his financial interests while rushing the merger in late 2021. This legal action also alleges that the sale served to protect Kotick from fallout related to sexual misconduct allegations.
In his defense, Kotick downplayed these accusations, suggesting another game publisher might benefit from the lawsuit’s outcome. He argued that the merger was crucial, stating that without it, Activision’s stock might have lost substantial value.
- Kotick asserts the merger was necessary to maintain company value.
- He claims that Activision would be worth less without the buyout.
Call of Duty’s Sales Decline
The focal point of Kotick’s argument is the drastic decrease in Call of Duty sales. He claims that current console sales are the lowest they’ve been in years, coupled with the assertion that Call of Duty’s performance is down by over 60% from last year. This decline is attributed to increased competition from other gaming titles.
However, Kotick’s claims about sales figures have not been substantiated with concrete evidence. Industry reports indicate a downturn, confirming that sales of titles like Black Ops 7 have failed to match previous years’ performance. This trend comes amidst a broader decline in the gaming market.
- Call of Duty sales down over 60% from the previous year.
- Console sales are at an all-time low, impacting overall performance.
Market Challenges
Notably, November 2025 marked the worst month for physical video game sales since 1995. Typically a strong sales period, this time suffered from rising costs and economic pressures affecting retail discounts. Additionally, Microsoft’s Game Pass service has introduced new dynamics, potentially affecting full-game sales negatively.
In conclusion, while Kotick’s justification for the acquisition centers on the dramatic drop in Call of Duty sales, the veracity of his claims remains in question. The ongoing legal battles add layers of complexity to the sale, which may have long-term implications for both Activision and the broader gaming industry.
