Key Takeaways
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- The Swedish pension fund Sjunde Apfonden has filed a lawsuit against Microsoft, Activision Blizzard, and Bobby Kotick over allegations that Kotick expedited the sale of Activision Blizzard to avoid repercussions from sexual harassment scandals.
- Bobby Kotick, in response, denies the allegations and accuses Embracer Group of market manipulation. He also attributes the decline in Call of Duty sales to competition and delays in rival games.
- Call of Duty sales plunged in 2025, with a reported drop of 60% compared to projections for 2024. The latest game, Black Ops 7, is expected to sell 60% less than the previous year’s version.
- Despite the decline in sales, Call of Duty remains a popular franchise, retaining its second place position on PlayStation and shifting from first to second place on Xbox between 2024 and 2025. Major changes are planned for the Call of Duty franchise to avoid releasing consecutive games from the same sub-brand.
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Decline in Call of Duty Sales Sparks Lawsuit over Activision Blizzard Acquisition by Microsoft
Nearly three years after Microsoft acquired Activision Blizzard for $69 billion, the story continues with a lawsuit initiated by the Swedish pension fund Sjunde Apfonden (Ap7). The lawsuit revisits the controversy surrounding the acquisition and highlights an unexpected detail: a significant decline in Call of Duty sales. Ap7 alleges that Bobby Kotick, then CEO of Activision Blizzard, expedited the sale as early as 2021 to avoid repercussions from the company’s sexual harassment scandals. Ap7 aims to transform the lawsuit into a class action to secure compensation for shareholders and potentially invalidate the agreement. The defendants are Microsoft, Activision Blizzard, and the board of directors at the time, including Kotick.
Activision Blizzard Leadership Disputes Allegations, Accuses Embracer Group of Market Manipulation
In an official response submitted in December 2025 and made public in early January 2026, Kotick denied the allegations and offered an alternative interpretation of events. He suggested that internal scandals, negative press, and even Ap7’s lawsuit were not direct results of his leadership but could stem from actions by other industry players. Kotick specifically pointed to Embracer Group, a Swedish publisher with licenses for titles such as Tomb Raider and Dead Island, as a possible beneficiary of the legal action. He argued that the lawsuit could weaken Activision in terms of recruitment and acquisitions, thus benefiting Embracer in the California market.
Call of Duty Sales Plunge in ’25, Kotick Blames Competition and Delays – Future Changes Ahead
Kotick’s defense comes as Call of Duty faces a significant downturn. According to Kotick, sales in 2025 dropped 60% compared to projections for 2024. He attributed this decline to competition from games like Battlefield 6 and Arc Raiders, adding that the latest Call of Duty game, Black Ops 7, is expected to sell 60% less than the previous year’s version. The game’s Steam launcher saw record-low peak player counts, with only 38,974 players in the first 24 hours. Kotick also claimed that this decline undermines the U.S. Federal Trade Commission’s (FTC) argument regarding a lack of competition in the first-person action game category resulting from the acquisition, given the delays of Battlefield 6 and Battlefield REDSEC Season 2. Despite the significant decline in sales, Call of Duty retains a dedicated player base. According to data from Circana, the franchise (including Warzone, Black Ops 6, and Black Ops 7) remained the second most-played game on PlayStation in both 2024 and 2025. On Xbox, the franchise shifted from first to second place during the same period. Kotick also stated that major changes are planned for the Call of Duty franchise, such as avoiding the release of consecutive games from the same sub-brand.
Call of Duty: Black Ops 7 Amid Legal Struggles – Shifts in Activision Blizzard and Gaming Landscape
While a new patch updating several weapons has been released for Call of Duty: Black Ops 7, the legal battle and sales data indicate significant shifts within Activision Blizzard and the broader gaming landscape.
In Case You Missed It
In our exciting exploration of the gaming world, we invite you to start with Bruno Pferd’s insightful review, “Review: We Played as Vendetta and Discussed Season 20 of Overwatch 2” (published December 30, 2025), where Pedro and Paulo Zambarda de Araújo delve into the intricate gameplay mechanics of Vendetta, the latest hero to join the fray in Overwatch 2. Bruno masterfully weaves together Vendetta’s tragic backstory with her impact on the competitive scene, making this an unmissable read for any Overwatch fan eager to understand Season 20’s new power player Review: We Played as Vendetta and Discussed Season 20 of Overwatch 2. Next, Marcus Thompson explores the gaming landscape in his latest article, “Sony and Xbox Dominated Players in 2025,” published on December 29th. Diving into the end-of-year lists by How Long to Beat (HLtB), Thompson reveals an unexpected rivalry between these two giants, with Xbox emerging victorious across multiple categories, from DOOM: The Dark Ages to South of Midnight and even Indiana Jones’ grand adventure Sony and Xbox Dominated Players in 2025. But that’s not all! Carlos Mendoza has just dropped a bombshell over on Players for Life. In his latest post, “First Call of Duty for Switch 2 May Be Announced Soon,” published on January 12th, 2026, he delves into data found within the game’s code that suggests the debut of Call of Duty on the Nintendo Switch 2 is just around the corner. With Microsoft’s promise to make Call of Duty available on multiple platforms and Realityuk’s discovery indicating support for Nintendo systems, it seems like fans might finally get their hands on a Switch version of this popular series First Call of Duty for Switch 2 May Be Announced Soon!
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