830°

Infinity Ward Has Not Received Royalties for Modern Warfare 2

Activision's sudden dismissal of Infinity Ward co-founders Jason West and Frank Zampella and locking out IW employees from their own offices has raised a lot of questions. As new information becomes clear, some of these questions are being answered.

According to anonymous statements given to Binge Gamer's James Walker, Activision has yet to pay Infinity Ward so much as a dime in royalties for 'Modern Warfare 2', which has earned Activision over one billion dollars in revenue. Additionally, a separate source has suggested that Activision's reasoning for firing West and Zampella for "breaches of contract" may be tied to what Infinity Ward was intending to do after their contract with Activision expires in October, 2010.

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zack615171d ago

This is why I hate activision.

ape0075171d ago (Edited 5171d ago )

im 100% sure that infinity ward is so angry with the yearly CoD release it's like seeing their own games getting lame, over milked, overused, IW is one of the best studios in our day, treat them well damnit

activison is like BUCK $$ now, quality LATER, Infinity ward is Too good for activision to be honest

let treyarch release a spiderman game or something, I know WaW is Good but let the whole cod series to IW

Projekt7tuning5171d ago

Its seem like Activison is trying to find a way to keep every dime of the royalties. I tried to imagine myself in this situation, being forced out of my own business, and I think 911 would have had to be called. The gaming industry is turning just as slimy as Hollywood. People could always fix this by sticking to a boycott of Activision.

Barbapapa5171d ago

activision pulled a Shepard on IW.

Raf1k15171d ago

In a perfect world the IW employees could simply make themselves a new studio with no ties to Activision but that just isn't the way it works.

Half of Acti-Blizz's money comes from Blizzard. When SC2 and the new WoW expansion release it'll be Blizzard holding it's head high. While this is great for Activision too I'm guessing it wants to do what it can to feel like it's still the man of the house.

JsonHenry5171d ago

Who cares. Go create a new studio and make your own game. And if you don't like your company being in the pocket of a larger corp. then DON'T take your company public!

mastiffchild5171d ago

Ape-after their early games and after COD4 I would have agreed fully. However, the disgraceful way they BOTH cut corners to garner every last cent over MW2 showed too much had rubbed off on IW from their feeble, greedy paymasters for their own good.

Play with sh1t and you'll end up pretty smelly yourself. hopefully IW can go back to remembering they were gamers themselves once and concentrating on giving us the best game possible and they didn't do that with MW2-no matter how much you might like the game with all it's faults you just cannot say it's as good as it could have been. not imo and most of that can be put down to the corners they cut with Acti's blessing over things like dedicated servers(the lack of), no betas and too little QA.

I still don't dooubt the talent at IW but found their motives had altered greatly since the last game came out, sadly. A return to normal service where they improve from one to the next would be a great thing and freeing them from the COD straightjacket AND Acti even better!

krisq5171d ago (Edited 5171d ago )

You want creative freedom? Go to Sony. I'm sure they would welcome you with open arms.

Rusco875171d ago

This could lead to IW going exclusive to the highest bidder. If their contract runs out in October this year and activision are pulling stunts like this.

This would also give them less pressure and not churn out a CoD every 12 months so they can work longer the produce better titles. Only problem is contracts and IW loosing out on sales from the opposite platform.

Note: I didn't state which console it should be exclusive to. I don't want to start that debate.

vhero5171d ago

point 4 makes me think that somebody like MS (most likely suspects if any since they clearly said its NOT EA) maybe tried to buy IW from under Activisions nose and that's why this happened. Obviously this has gone and spiralled out of control but money does that to the community and if it comes out it was a 3rd company responsible for this by trying to buyout IW from under Activision like MS or whoever then they will no doubt be hated by a LOT of the gaming industry as nobody will trust them.

Udidntlistenpunk5171d ago (Edited 5171d ago )

First of all, why should Activision pay royalties to IW?

They own 100% of the shares of IW and the franchise called Call of Duty.

I dont think you people understand how all this works. Subsidiaries dont receive royalties from parents. Its the other way around. Every profit the subsidiary earns, goes to the parent.

Not only is IW a subsidiary of Activision, Activision even owns the IP called Call of Duty. Even if the IP was "developed" by IW (which CoD is not btw), legally, its still Activision that owns it and can do with it what they want.

Second of all, if they own IW, they can decide who works there and what work is being done. Tough luck. They can even close down IW if they want to.

IW doesnt get to chose. They cant "go to Sony or Microsoft" like some people above here said. The guys working at IW can go to Sony or Microsoft but not IW. They have to quit first or get fired. Its that simple.

Its like this. Activision is the gamer. IW is the console (PS3, 360, Wii). If the gamer isnt happy, he can throw the console away, take it back to the shop or just leave it to collect dust. He can even give it away to his neighboor. The console doesnt get to chose. Its just a electrical brick. Just a device.

sikbeta5171d ago

This is FOR REAL, or it's just cuz of BC2?

IW is OWNED by CRAPtivision and COD IP too, so why they have to receive Royalties, they only receive pay-checks for the work done, not for every game sold

Gamers FTW!!!

DaTruth5171d ago (Edited 5171d ago )

Well, I guess now we can blame Activision entirely for the mess that is MW2. If IW wanted to make a better game, we can clearly see that they wouldn't have a choice!

Activision probably have them toiling away in some Chinese sweatshop-esque warehouse churning out Modern Warfares like... like... like pretty much anything we buy nowadays!

nycredude5171d ago

I'm never buying another activision product ever again.

Jdoki5171d ago

@mastiffchild

I dunno mastiff. I think IW had good intentions when they moved to Activision. I doubt they did it purely out of financial gain or to cut corners and have an easy life.

I think they simply got pressured by Activision, and were not able to deliver their vision. Activision seem intent on making CoD a franchise, and it has fallen in to the same trap EA found itself in with Madden and Need for Speed etc.

Everything about MW2 smacks of a developer being forced to churn out more of what's popular and under a tight timeline, rather than innovating or producing something fresh.

I'm hoping there's a mass exodus from IW. Activision can keep the CoD IP. I'm hoping the obvious talent that is there will find a new home (ironically probably back at EA!) and produce the FPS I think they really want to.

I have a feeling this has been brewing for a while. The recent talk of Activision taking on a third developer for the CoD IP may have actually been them lining up a replacement for IW.

Jdoki5171d ago

@sikbeta

To be honest we don't know what agreements IW have had with Activision.

Maybe IW managed to negotiate a royalties deal. Or maybe the royalties are part of a bonus package if the game sells over X copies or makes X amount of money.

I'm not sure who owns the IP (probably Activision though). As IW was formed in 2002 and didn't join Activision for a year or so they may have been able to get themselves a deal on the CoD name. Maybe that's why Activision seemed keen to make sure that Modern Warfare 2 didn't originaly have the CoD name attached to it.

Ju5171d ago

Re Royalties. This is not entirely true. Usually every sub goes through a yearly budget process (and so goes the parent and all associated companies). Obviously its all up for negotiation every year; but money flows to who is more successful in the group (usually). And I can see why in that case IW would have thought they would get something back being the cash cow in the group while Activision might have used that to pressure them to renew their contract - else no money. This is still independent of salaries but the bigger budgets, bigger possibilities.

Baka-akaB5171d ago (Edited 5171d ago )

I cant let you claim that Jdoki , about some sort of pressure.

There is an actual interview and quote from IW itself , wich clearly shows that IW could in fact have done something completely different from MW2 with the franchise.

Activision , still being a greedy bastard , but smelling opportunities , was ready to open their purse whole and gave them "carte blanche" .

It is IW wich stated that it wasnt needed , and that the game wouldnt cost them an arm to make . Hence the build of MW2 upon cod4's engine and mechanics .

Activision as a whole is "a douche" , but IW was easily happy to oblige . Activision was more than happy obviously to follow to IW's own greedy ideas .

Now there are tensions , with each others trying to steal money from each other , or maybe only activision being a thief here ... but IW is hardly a victim and a slave .

SSS5171d ago

Activisions stock price went down somewhat last night. http://quote.morningstar.co...

Syronicus5171d ago

Is it ok to like them this week? Activision is the true demon here? Cool, I hated them anyway.

BattleAxe5170d ago

IW has been pretty close with Nauty Dog, maybe the secret new publisher is Sony.

jamesgtaiv5170d ago

THE A-TEAM

dun dun dunnn, dun dun dun dun dunnn...

Pillage055170d ago

I imagine their contracts work much like actors...you get this much money for doing the movie no matter what. If the movie grosses over this amount..you get extra(percentage or fixed..im not really sure).

If there wasn't something like this, then why would studios work harder to make a AAA game as opposed to just an A game. They could be getting payed the same for doing less work.

This is total speculation...I really have no idea. It just wouldn't make sense though if IW got payed the same amount no matter how well their game performed.

arakouftaian5170d ago

Know Sony should go and ask the
main guys from Infiniti ward to join them
and create a new studio with the suport of SONY
or just to to Guerilla Games or Zipper and help to create
the new SOCOMs or KILLZONEs
it will be a smart move from SONY and the guys from INFINITI WARD

Saaking5170d ago

Wow, can't believe Activision actually went this low. I'm sure the IW devs will find new work though. There's probably a lot of studios eager to hire the creators of the best selling FPS.

jamesgtaiv5170d ago (Edited 5170d ago )

Now Activision thinks theyre some kind of gaming cartel. IW shouldnt have even asked for the royalties to begin with. Theyre under contract, a good company owner would know that but Activision could have handeled it much differently. Switching publishers wouldnt help much either since Activision owns the rights to the franchise. This sure is a pretty big mess! Chances are IW will stay with their current publisher until/if another company buys their most lucrative franchise.

Anyway... Back to playing Bad Company 2.

5170d ago
KingKiff5170d ago

Screw Craptivision anyway their games have always sucked...

And we won't be seeing a new COD title or any $$ DLC for the consoles any time soon... Maybe a whole 18 months beofre we could see MW3 or sum shiat like that lol

God_Of_Epicness5170d ago

F+@# Activision.

P.s. Modern warfar2 is the most addictive game i've ever played.

Millah5170d ago

I really wish the gaming industry wasn't run by filthy slimy scoundrels. Like seriously, I really really really despise corporations like Activision. Absolutely despise them, especially in the gaming industry.

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PirateThom5171d ago

No wonder Activision are bricking it. Their biggest earner could and will just walk in October... they've sealed it though, no way Infinity Ward will happily give up the rights to CoD now.

Raf1k15171d ago

I thought the CoD IP was owned by Activision?

hakeem09965170d ago

i can already see it MS will be more than happy to make all of IW problems go away.it's the only company with enough balls to put ACTIVISION'S in it's place.

2010 just got crazier. MS BUYS IW!!!!
LMAO

BattleAxe5170d ago

@ Hakeem, MS is at Activisions mercy since they don't have much in the way of First Party Development. Sony could afford to give Activision the shaft.

BuZzz Killington5170d ago

man im not even remotely connected to iw and im hardcore pissed off at activision that above post is 100% right if that was me and i was locked out and fired from my bussiness and i wasnt getting paid theyd have to call 911 and the swat team. ive played gta 4 so watch the f out lol. IW should go to sony and make a totally awesome game on the ps3. sony will make them have a beta.....also i hope whatever activison is doing the fail and iw gets there deserved money..ACTIVISION are spineless bastards!!!!!!!!

Lich1205170d ago

Is IW their biggest earner? I have a feeling Blizzard brings in more, or maybe they go back and forth ... depending on when their products launch.

5170d ago
Millah5170d ago

Blizzard makes like almost half of Activisions money.

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Claudinho695171d ago

sounds like future updates and dlc will be screwed by this.......great...

Godmars2905171d ago

Think you're missing the sarcasm ape007.

HxCGamer5171d ago

he doesn't really rmean that lol

RedDragan5171d ago

When he says great he doesn't mean it in a derrogatory way, although another poster has outline he meant it in sarcasm, it is close but not quite.

I not sure of the actual term, is this terminology used in this circumstance an oxymoron?! I haven't studied English in a long time lol... but I am sure he meant the word great as an oxymoron.

DaTruth5171d ago (Edited 5171d ago )

No, oxymoron's are two words that just can't be put together!

Example: Activision and quality or Activision and humility or Activision and Good-customer-relations.

Two words that don't make sense in the same sentence!

gamingisnotacrime5171d ago

i think "great" is used here to express dissapointment on the probability that MW2 will not get DLCs any time soon.

ape0075170d ago (Edited 5170d ago )

my bad my bad

LoL

BuZzz Killington5170d ago

how the hell did you miss that sarcasm now your just looking for cod haters in anybody lol....that was basically the definition of sarcasm lol

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ASSASSYN 36o5171d ago (Edited 5171d ago )

And with all the bugs they don't deserve it!
And all the crying over the call of duty name omission makes sense now. If activision did use the name they would have to probably pay royalties immediately.

cyborg69715171d ago

Now I know why mel Gibson hates JEWS

Udidntlistenpunk5171d ago

It doesnt matter who worked on what in Modern Warfare 2. They get paid wages and loans and thats about it. Maybe a bonus when certain targets are accomplished.

There is no such thing as "royalties being paid to a subsidiary". Thats bullshiat. I dont have to pay to use something I own.

Second of all, it seems like Infinity Ward just got destroyed. Serves some of those bots like fourzerotwo or whatever his name is, right.

Those bots needed a fking lesson. They got too kaki but forgot that they are merely employees of Activision. If you cant get along with the boss, its not the boss's fault but yours. Remember that sentence. The boss isnt going to quit the company cos he cant get along with some of his employees. Its the other way around. The employee needs to go. And that can happen in several ways: he gets fired or they work it out like gentlemen and he ends up quitting.

Those bots gave the 360 timed MW2 DLC exclusivity. Those bots always favored the 360. With a name like "fourzerotwo", I expected nothing else. Clearly an idea taken from the "threesixty".

Those bots got owned. Activision told them this: "look you either shut the fk up or get the fk out of Infinity Ward"

Looks like they took the second option lol. Smart move by Activision with the armed security personal. They made sure not one of those employees get to steal any IP, sketches, ideas or drawings.

If they going to start over again, they have to start from absolute scratch. And I mean from the very beginning.

They are probably going to suck right now since they have no engine. If they start a new game, they will probably use the Unreal Engine 3.0. So whatever game they are making, will probably stink.

Thats of course, assuming that they stick together and start over. Im betting half the personel will apply at other firms. Not so smart from them to walk away with the economy in the shatter.

dredgewalker5170d ago

Its official, Kotick is the Devil and Activision is Hell.

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70°

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La Casa involves intense action in a Vill and Koro Village is a battle in the streets where enemies lurk at all angles and shadows.

60°

MW3 shouldn’t leave Modern Warfare 2’s overlooked playlist behind

Modern Warfare 3 is set to be one of the biggest COD games yet features-wise, but it shouldn't leave out one of the best MW2 game modes in the rear view mirror.

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Modern Warfare 2 Adds Pay-to-Win Items With Thermal Scope and Merlin the Dog, Here's How They Work

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PunksOnN4G261d ago

The DOG is legit Broken if ur hiding in a room or grass he turns his head even if ur behind a closed door he turns his head and barks letting them know where u at thats PAY TO WIN!!!!!

LucasRuinedChildhood261d ago

I hope all the assholes who buy these get stuck in lobbies with each other. I skipped new COD games for a long time and a short time with MW2 convinced me to go back to on a hiatus.

With the skill-based matchmaking (engagement-based would be more accurate), I imagine this will make the game even more miserable for most players when the matchmaking has decided it's time for a tough lobby.

I played the OG MW2 recently on the Series X and it's disheartening how much more fun it is. I don't even care about the balance issues anymore. lol

PunksOnN4G261d ago

My friends dont play with me anymore i am former pro player and i even streamed on MLG for RX gaming the team i played for... My KD is always high 5-6kd my friends who i went to school with are not good wht so ever so with SBMM kicking in its always putting us in TOP TIER lobbys and they cant hang now they dont even tell me when they getting on LOL

ManMarmalade261d ago

I recently started playing OG MW2 again and I'm having a blast. Feels like I'm in high school again.

fr0sty261d ago (Edited 261d ago )

Welcome to COD under MS. It's all downhill from here, they're going to be looking to make that $68B back as fast as possible, at any expense to the player.

StarkR3ality261d ago

The deal hasn't even closed yet you pleb. CoD has been doing stuff like this since the loot boxes in WWII.

Nice try though pal.

TheColbertinator260d ago

Activision has never needed Microsoft or anybody for that matter to act like greedy bastards

PunksOnN4G260d ago

why did my 2nd comment about SBMM get downvited LOL?? Do we have people who Enjoy trash SBMM tbh make sense it caters to LOW KD players and u will never get better playing with the same trahs everyday LOL

andy85261d ago

Probably gonna see more of this BS once the deal is fully done..Gotta recoup that 70B.

Jin_Sakai261d ago (Edited 261d ago )

Look at Minecraft. The game hasn’t went anywhere since Microsoft bought them. No 4K, no 120fps, no graphics pack, and no Ray Tracing. Just some new biomes, mobs, and more skins as usual.

Same could be said about Rare. Who knows what will happen to Activision once they’re under Microsoft’s roof. We can all take a good guess though.

PunksOnN4G261d ago

TBH they did update it by accident then they pulled the update down on xsx and xss i remeber the XSX version having ray tracing but the S did not. Then after people seen that it was updated it was removed that same day

peppeaccardo261d ago

No way !!! Nobody wouild think they would monetize on items that weak asses will use to get advantage during multiplayer action !!! I would never think they would do that ... I mean is a free to play game after all ! /S
Wait once M$ will put their greasy hands all over Activizion and you will see what awaits the "lucky" ones who will play this slot machine of a game. Sooooo Lame !

jznrpg261d ago

They way it works is you give them money and more money and more money.

anast260d ago

It's a true phenomenon that people haven't figured this out yet.

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