Activision Sale Back In Focus After Kotick Comments On Console Sales

Former Activision Blizzard CEO Bobby Kotick has claimed that declining Call Of Duty sales and a broader slump in console performance prove he was right to sell the company to Microsoft for $69 billion. The remarks appear in a legal response tied to an investor lawsuit challenging the timing and value of the acquisition.

Kotick left Activision Blizzard in late 2023 after the company was acquired by Microsoft. The deal transferred ownership of major franchises, including Call Of Duty, to Xbox as part of one of the largest mergers in gaming history.

Investors Accuse Kotick Of Undervaluing Activision

The lawsuit is led by Swedish pension fund Sjunde AP-fonden (AP7), which argues that Kotick rushed the sale and accepted a takeover price that undervalued Activision Blizzard. The group claims shareholders lost potential upside by agreeing to the $95-per-share offer.

Kotick has denied all allegations, stating that the merger reflected realistic market conditions and protected shareholder value amid worsening industry performance.

Kotick Points To Call Of Duty And Console Decline

In his response, Kotick argues that Call Of Duty sales have fallen sharply year over year and that console sales are at historic lows. He frames these trends as evidence that selling Activision Blizzard when he did was a forward-looking decision.

While Kotick cited a steep decline in Call Of Duty performance, neither Microsoft nor Activision has released public data confirming the exact scale of the drop. The comments have nonetheless sparked debate across the Call Of Duty community.

Console Market Slowdown Adds Context

Recent industry data supports the broader claim that the console market has cooled significantly. U.S. hardware sales declined sharply in late 2025, marking one of the weakest periods for console demand in decades.

Sales declines have affected all major platforms, including Xbox Series consoles, PlayStation 5, and Nintendo Switch hardware. The slowdown has raised concerns about long-term growth across the traditional console ecosystem.

Game Pass Complicates Call Of Duty Sales Comparisons

Call Of Duty now launches day one on Xbox Game Pass, which complicates direct comparisons with prior years that relied heavily on full-price game purchases. Subscription access can reduce traditional sales figures while still driving player engagement.

Analysts note that Game Pass availability makes year-over-year sales comparisons less straightforward, particularly when evaluating franchise performance across platforms.

What Happens Next

The investor lawsuit remains ongoing, and Kotick’s comments are likely to remain a focal point as the case develops. Future disclosures may clarify how Activision Blizzard measured Call Of Duty performance after the Microsoft acquisition.

With Activision now fully integrated into Microsoft’s gaming business, the outcome of the case could influence how future large-scale gaming mergers are evaluated by investors and regulators.