Jason West and Vince Zampella fired from Infinity Ward/Activision

[Squilliam]

UPDATE 11:20 PM: It turns out Activision may have showed their hand in this matter earlier today.

In an SEC filing made earlier today, Activision cited a human resources investigation into "into breaches of contract and insubordination by two senior employees at Infinity Ward."

Based on the information we currently have, at least one of those employees may have included Infinity Ward CTO Jason West. It's possible Vince Zampella is the other unmentioned employee.

"This matter is expected to involve the departure of key personnel and litigation," read the Activision's filing. "At present, the Company does not expect this matter to have a material impact on the Company."

Link

I cannot believe this is happening today. To me Call of Duty Modern Warfare is dead as a franchise going forward. Theres just no way that Infinity Ward is going to survive these dramas intact. On a positive note, Repi and his gang have an opportunity to fill these shoes as I doubt that much of the significant talent is going to remain at Activision for much longer.

So where do you think they'll go? New Studio they set up? Join an existing place or exit the industry entirely? Also what will this mean for the staff members who are there? Will they jump ship too?

 

[eastmen]

MS should snap them up for their halo team.

Or sony should grab them to breath life and get that missing ingredeant for thier fps franchises they are trying to grow

 

[Rangers]

I'm pretty sure they were fired because they wanted to make their own studio (and, take other IW employees with them, hence Activisions move), not work for the man again.

 

[corduroygt]

Yeah I think zipper would have benefited from these guys when developing mag

 

[Squilliam]

Wouldn't in sour relations between Activision and either Sony/Microsoft if they gave employment to any person currently employed at Infinity Ward? Although Activision doesn't have a claim over these two, if they started wholesale poaching of the remaining Infinity Ward staff it would make things pretty tense, wouldn't it?

 

[obonicus]

There's also talk that Activision hadn't paid IW bonuses yet, and that IW might be trying to sign up with a different publisher when their contract expires. That second rumor doesn't make much sense, though: the idea is that Activision doesn't own IW, it just has an exclusive contract with them. So how did ATVI manage to fire people?

 

[Zaphod]

I think that last rumor somehow got turned around. When you acquire something of which a substantial part is the value of the employees/people, you'd want to secure that they just don't say thanks for the money and walk out the door. It's been posted that the contracts of core people at IW were about to expire (and may have been shopping themselves around), which makes more sense.

 

[obonicus]

That does make a lot more sense.

 

[NathansFortune]

Wouldn't in sour relations between Activision and either Sony/Microsoft if they gave employment to any person currently employed at Infinity Ward? Although Activision doesn't have a claim over these two, if they started wholesale poaching of the remaining Infinity Ward staff it would make things pretty tense, wouldn't it?

So?

Activision can't afford not to put games out on either console. With around 35m 360 users and 30m PS3 users out there investors would start asking questions if Activision went on some type of crusade against MS/Sony if they decided to take West and Zampella into their fold.

The tide has changed enough so that third parties need the console manufacturers rather than the other way around. Especially since Sony are actively expanding their first party and MS hiring internally to enlarge. Third parties don't want to end up like they have on Nintendo consoles on PS3/360.

 

[NathansFortune]

I think that last rumor somehow got turned around. When you acquire something of which a substantial part is the value of the employees/people, you'd want to secure that they just don't say thanks for the money and walk out the door. It's been posted that the contracts of core people at IW were about to expire (and may have been shopping themselves around), which makes more sense.

Well what we were hearing over the last few months is that IW had been looking for a private investor to buy the studio from Activision so they could go independent. The Call of Duty brand is wholly owned by Activision, but Modern Warfare is partly owned by IW.

I wouldn't be surprised if this was the end result of West/Zampella finding a likely bidder and making an offer to Activision and this is their response. Basically firing them before they quit in October.

The result is largely academic though, with the two founders of the studio gone and replaced with random publishing/distribution heads internally from Activision the natives at IW won't stick around too long after their contracts expire...

 

[obonicus]

Gamasutra has a good summary of the rumors flying around:
http://www.gamasutra.com/view/news/27482/Analysis_Infinity_Wards_DoubleEdged_Sword.php

...
Numerous sources with knowledge of the situation have speculated to Gamasutra that the contract dictates only Infinity Ward may make games in the Modern Warfare arm of the Call of Duty franchise. Other studios, like fellow Activision subsidiary Treyarch, may continue develop other Call of Duty-branded titles.
...
Another source suggests West and Zampella could have demanded a larger share of profits in return for developing Modern Warfare 3 on Activision's schedule instead of in line with Infinity Ward's original plans. According to that account, those attempts to re-negotiate or add to the current contract prompted Activision's ire.


Some media reports have inaccurately conflated this week's situation with outstanding royalties from Activision to Infinity Ward. But sources confirm to Gamasutra that Activision routinely pays royalties at the end of the quarter after which they were earned, which will begin next month, meaning the publisher is not overdue in its financial responsibilities.
...
Another source with knowledge of the situation tells Gamasutra that although Infinity Ward is only about 75 developers strong, Activision brass demanded layoffs at the studio anticipating a refusal -- which they received, potentially opening the door for Activision to use that refusal as a way to launch a breach suit that would help it escape its contract.

 

[tuna]

The result is largely academic though, with the two founders of the studio gone and replaced with random publishing/distribution heads internally from Activision the natives at IW won't stick around too long after their contracts expire...

Why not?

 

[NathansFortune]

Why not?

Have you ever been put in a situation like this before where old friendly management has been thrown out and replaced with glorified beancounters?

Believe me it isn't good, especially since Activision is mostly full of idiots who care about the bottom line rather than quality which seems to be the opposite of IW. Key workers at IW won't have any difficulties in finding a job anywhere else in the industry and I highly doubt they would want to stick around with the company that fired their founders and basically told them 'do what we say or we'll fire you'.

 

[tuna]

Have you ever been put in a situation like this before where old friendly management has been thrown out and replaced with glorified beancounters?

Believe me it isn't good, especially since Activision is mostly full of idiots who care about the bottom line rather than quality which seems to be the opposite of IW. Key workers at IW won't have any difficulties in finding a job anywhere else in the industry and I highly doubt they would want to stick around with the company that fired their founders and basically told them 'do what we say or we'll fire you'.

How do you know the old management was "friendly"? Also, this opens places at the top that has to be filled, some with promotions from within. And if Activision is smart it could be very friendly to the staff that remains (in terms of wages and perks).

Also, 'do what we say or we'll fire you' is how it normally works. You can try to persuade the person who decides, but the decision very often is not yours to make. And if you sell something it is not yours anymore.

 

[upnorthsox]

I'd say that West and Zampella have a short window of opportunity to draw people out, but once the next game cycle starts it'll be alot harder. One thing on this though is that it sounds like MW3 may be caught up in litigation for a while which may give them more time.

How do you know the old management was "friendly"? Also, this opens places at the top that has to be filled, some with promotions from within. And if Activision is smart it could be very friendly to the staff that remains (in terms of wages and perks).

Well if it's true that activision wanted them to fire people for little more than to put them in a better bargaining position then that'd go long way to making the "Old" guys friendlier, woudn't it?

 

[assen]

Have you ever been put in a situation like this before where old friendly management has been thrown out and replaced with glorified beancounters?

Dunno about the distribution guy, but Steve Pearce is not a beancounter, and most definitely not an idiot. He's a Activision veteran, rising through the ranks from programmer to Activision's CTO:

http://www.mobygames.com/developer/sheet/view/by_title/developerId,3941/

 

[tuna]

Looking back at my comments I sound a bit to harsh....I feel sympathy for the two fired, I'm sure they had a lot of friends and a good relationships with their colleges. Hope they get through it allright!

 

[Tap In]

Infinity Ward's Jason West And Vince Zampella File Lawsuit Against Activision

It looks like the former leadership of Infinity Ward are not going down without a fight. Former Infinity Ward CTO Jason West and president Vince Zampella have officially filed a lawsuit against Activision, according to a press release issued by their lawfirm, O'Melveny & Myers LLP.

According to the release, West and Zampella were terminated by Activision "weeks" before receiving royalties for Call of Duty: Modern Warfare 2. Activision purchased Infinity Ward in 2003.

"We were shocked by Activision's decision to terminate our contract," said West. "We poured our heart and soul into that company, building not only a world class development studio, but assembling a team we've been proud to work with for nearly a decade. We think the work we've done speaks for itself."

O'Melveny & Myers LLP attorney Robert Schwartz is suing Activision in pursuit of West and Zampella's right to compensation for the production and sales of Call of Duty: Modern Warfare 2 and the contractual rights allegedly granted to the duo to control "Modern Warfare-branded games." It seems West and Zampell are actually fighting for the right to create Modern Warfare games outside Activision.

Here's the full passage.

"Modern Warfare 2 is arguably one of the most successful games in history and together with Call of Duty, has generated more than $3 billion in sales for Activision. In addition, Activision seized control of the Infinity Ward studio, to which Activision had previously granted creative control over all Modern Warfare-branded games. The suit was filed to vindicate the rights of West and Zampella to be paid the compensation they have earned, as well as the contractual rights Activision granted to West and Zampella to control Modern Warfare-branded games."

Let that idea sink in.

"Activision has refused to honor the terms of its agreements and is intentionally flouting the fundamental public policy of this State (California) that employers must pay their employees what they have rightfully earned," said Schwartz in the release. "Instead of thanking, lauding, or just plain paying Jason and Vince for giving Activision the most successful entertainment product ever offered to the public, last month Activision hired lawyers to conduct a pretextual 'investigation' into unstated and unsubstantiated charges of 'insubordination' and 'breach of fiduciary duty,' which then became the grounds for their termination on Monday, March 1st."

According to the release, the suit is alleging "breach of contract, breach of the implied covenant of good faith and fair dealing, wrong termination in violation of public policy, and declaratory relief."

The implications of this lawsuit are tremendous and far-reaching.

 

[Laa-Yosh]

What, Activision actually wants to avoid paying the guys for their work in the 1.5 billion blockbuster videogame? Have they gone completely mad?

 

[Rotmm]

What, Activision actually wants to avoid paying the guys for their work in the 1.5 billion blockbuster videogame? Have they gone completely mad?

If, after promoting the living shit out of the Modern Warfare games to ensure that success, they discover that the studio heads are out there looking for new bidders for their services, then Activision may feel aggrieved enough to both (a) terminate the contracts and (b) withhold royalties of those individuals who are already looking for employment elsewhere.

I'm not saying that it's the case they were offering their services to the highest bidder, but there are two sides to every story and it would be remiss of us to take either the assertions of Activision or Jason/Vince at face value.