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Activision has countersued Jason West and Vince Zampella, the former leaders of Call of Duty: Modern Warfare 2 studio Infinity Ward. The court documents detail Activision's reasons for firing the two executives in March.
In the countersuit, Activision alleges that West and Zampella met with a rival company. Though unnamed in the documents, the rival is said to be in Northern California so everyone and their mother assumes it's EA. Activision's filing also claims that the two execs withheld bonuses from other IW employees and delayed development of Modern Warfare 3 in order to extort higher compensation.
Zampella and West's lawsuit states that Activision fired them in order to avoid paying royalties on MW2, which has sold over 14 million copies worldwide since November. It's their opinion that the insubordination charges are merely a ruse to allow Activision to terminate their contract. They're seeking $36 million in damages and control of the Modern Warfare subset of the Call of Duty franchise.
Regardless of what happens to the MW license, it probably won't interrupt the annual release schedule for the COD series. Treyarch is currently working on Call of Duty 7 for a fall 2010 release and Sledgehammer Games is making an action-adventure COD for 2011.