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Bobby Kotick on Infinity Ward

The Activision boss talks frankly about the studio's future...

Since we assumed some change and dislocation at Infinity Ward, I want to take a moment and share thoughts on the studio and its future.

The team in Infinity Ward today is comprised of some of the most talented people in the video game industry. They're an incredibly well-respected group who are motivated and, obviously, extraordinarily capable.

Since we terminated the two executives at Infinity Ward, approximately 35 others have resigned and it is likely that few more people will leave as well.

Many of these people have been recruited by other studios because of how talented they are. We are obviously disappointed about this, and we wish we could have convinced some of these incredibly talented people to stay.

The decision, though, to terminate the two Infinity Ward executives was not done lightly. And it was not done to deprive them of their bonuses nor was it done without a great deal of deliberation about the consequences.

The background leading up to our decision to separate the two former Infinity Ward executives for breach of contract and breach of fiduciary duty is outlined in our cross complaint that we filed in April, which I'm sure many of you have read.

Against this background, we felt we had no choice but to terminate the two Infinity Ward executives. We did this to protect the company's assets and the interest of our shareholders.

I currently consider the two of them friends and their conduct was a compromise of our friendship, which is equally disappointing. Once we began to understand what had occurred, there was no grey area.

There was nothing that would have allowed us to retain their services, as talented as they might have been.

This is an example of our commitment to pursuing the difficult right rather than the easier wrong.

Our actions were firmly rooted in our long-standing values of integrity, and an expectation that our employees, who signed and acknowledged our code of conduct, will behave with the highest ethical standards.

We have a great place and a great team in place at Infinity Ward, which continues to work on downloadable content and the studio's next unannounced project. We continue to support the culture of excellence that has defined Infinity Ward, and we're already strengthening the studio with additional talent and financial resources.

You'll hear more about our exciting plans for the Call of Duty franchise and the many studios and resources now focused on continuing to create incredible entertainment based on this franchise later in the call.

Besides the frustrations with the former Infinity Ward executives, we remain the top destination for development talent in the video game industry.

Bobby's comments came in Activision's Q1 Earnings call last night. Check out the whole transcript over at SeekingAlpha.com

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