In 2023, there has been a notable trend of employees departing from various companies, including LinkedIn and Amazon. This pattern is also evident in the gaming industry, with numerous professionals exiting their roles. December is poised to be significant, possibly marking one of the most substantial instances of departures in the gaming sector — the CEO of Activision Blizzard, Bobby Kotick, officially declared that he will conclude his tenure at Microsoft Gaming on December 29, marking the end of a long-standing leadership role spanning decades at Activision and Activision Blizzard.
Following Kotick’s leaving, Microsoft have revealed a set of significant leadership adjustments in the process of integrating Activision Blizzard into Xbox. Let’s dive into this article to learn more about Kotick with Activision, and Microsoft’s changes in leadership after Kotick’s leaving confirmation.
About Activision Under Bobby Kotick’s Guide
On October 13, Microsoft acquired Activision Blizzard for $68.7 billion, concluding a 20-month process initiated with the deal announcement, which faced regulatory scrutiny over antitrust issues. In 1990, Bobby Kotick and Brian Kelly purchased a 25% stake in the financially troubled Activision (Then Mediagenic). Kotick assumed the role of CEO in 1991, leading a restructuring and reverting the name to Activision. Over the years, Kotick successfully transformed the company into the largest third-party games publisher.
Bobby Kotick supported Infinity Ward, a team of FPS experts who left in 2015 (Medal of Honor’s creator) and joined Activision. They created Call of Duty in 2003, surpassing the Medal of Honor, selling over 425 million copies by its 20th anniversary in 2021. Controversial strategies, including disputes with key developers, led to legal battles and the formation of Respawn Entertainment by those developers.
Kotick then established studios for annual Call of Duty releases, which thrived until PlayerUnknown’s Battlegrounds disrupted the genre. Call of Duty adapted with Warzone and Mobile, becoming highly successful. Despite dwindling new titles and transitioning studios like Toys for Bob into Call of Duty development, Activision Blizzard found success in World of Warcraft and Overwatch. Kotick faced both admiration and criticism for his strategic decisions.
Sexual Harassment Case
In July 2021, the California Department of Fair Employment and Housing sued Activision Blizzard for sexual harassment and discrimination. Activision Blizzard denied the charges, contesting their validity and refuting evidence of systemic issues. The accusations had a widespread negative impact on the company’s reputation.
Despite prior failed attempts, the Communications Workers of America successfully unionised several Activision Blizzard departments. A November 2021 Wall Street Journal article claimed Kotick knew about past harassment allegations, alleging he protected an accused employee. Kotick denied these claims.
Leaders at major game companies, including Sony and Microsoft, considered reassessing ties with Activision Blizzard. The declining stock price made the company a target, leading to Microsoft’s acquisition deal in January 2022, finalised in October. Throughout the transition, joint plans between Activision Blizzard and Microsoft were restricted. Kotick’s planned departure was consistently set for after the deal’s completion, aligning with his earlier announcement citing AI changes and Microsoft’s expertise as key factors in selling the company.
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Leaving Notes From Bobby Kotick
In his departure email to employees, Activision Blizzard CEO Bobby Kotick referred to them as “Extraordinary people”. He conveyed gratitude to those who played a role in building the company, expressing assurance that they would continue to inspire joy and unite people through the power of play.
“40 years later, as my last day leading this company inches closer, I marvel at how far the talented people at our company have come toward realising the great potential of games,” Kotick said. “You have transformed a hobbyist form of entertainment into the world’s most engaging medium. It has been the privilege of my lifetime to work alongside you as we broadened the appeal of games.”
Kotick also mentioned the instance when Phil Spencer, the head of Xbox, proposed the acquisition, stating, “It quickly became apparent that merging our enterprises would allow us to maintain leadership in the face of an expanding list of capable, well-funded competitors.”
Microsoft Unveils Changes in Leadership
Phil Spencer, Microsoft’s head of games, released a statement expressing gratitude for Bobby Kotick’s significant impact on the gaming industry. Spencer acknowledged the enduring success of Activision Blizzard, under Kotick’s leadership, in creating beloved franchises like Call of Duty, World of Warcraft, Candy Crush Saga, and others, entertaining millions of players for decades. Spencer thanked Kotick for his invaluable contributions, collaboration during the acquisition, and partnership post-closure, wishing him and his family the best in the next chapter.
Additionally, Spencer outlined organisational changes that will accompany Kotick’s departure, noting that most executives will remain in their current positions.
Organisational Changes Revealed
Thomas Tippl (Vice Chairman, Activision Blizzard), Rob Kostich (President, Activision Publishing), Mike Ybarra (President, Blizzard Entertainment), and Tjodolf Sommestad (President, King) will now report to Matt Booty (President, Game Content and Studios).
The leadership teams for Activision Publishing, Blizzard, and King will remain unchanged, maintaining the existing structure of how the studios and business units are managed, as stated by Spencer.
- Brian Bulatao (Chief Administrative Officer at Activision Blizzard) will report to Dave McCarthy (Chief Operations Officer, Microsoft Gaming).
- Julie Hodges (Chief People Officer at Activision Blizzard) will now report to Cynthia Per-Lee (Corporate Vice President, Gaming Human Resources at Microsoft).
- Grant Dixton (Chief Legal Officer at Activision Blizzard) will report to Linda Norman (Corporate Vice President, Gaming CELA at Microsoft).
- Armin Zerza (Chief Financial Officer) will continue reporting to Tim Stuart (Corporate Vice President, Finance at Microsoft), as previously announced.
Thomas, Brian, Julie, Grant, and Armin will assist in the transition until March 2024, according to Spencer.
Lulu Meservey, the Executive Vice President of Corporate Affairs and Chief Communications Officer, will depart Activision Blizzard King by the end of January. She has agreed to assist Kari Perez, the General Manager of Communications, in developing a leadership transition plan for the ABK Communications team, which will subsequently report to Perez.
Additionally, Humam Sakhnini, Vice Chairman of Blizzard and King, will leave at the end of December. Spencer expressed gratitude for their leadership during the past year.
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Final Say
In conclusion, Bobby Kotick’s departure from Activision, alongside the revealed leadership shifts following Microsoft’s acquisition, marks a significant chapter in the gaming industry. The changes underscore Microsoft’s commitment to integrating Activision Blizzard into their gaming portfolio, setting the stage for new developments and collaborations in the dynamic world of gaming. As the industry evolves, the impact of these transitions on game development, strategies, and player experiences will be closely watched by gaming enthusiasts and industry insiders alike.