CoD sales fell 60% — and Kotick says the collapse proves the Microsoft buyout was the right move. Does it?

For those unfamiliar, Bobby Kotick is the former CEO of Activision Blizzard King and led the company for decades, including during its $69B sale to Microsoft.

A Swedish pension fund called AP7 claims Kotick rushed that deal to protect himself from legal trouble while also locking in a massive personal payout.

As reported by Game File, Kotick has made a striking claim to justify the sale, saying selling to Microsoft was the smartest option because Call of Duty sales are now down more than 60% compared to last year.

Since Call of Duty is Activision’s biggest franchise, that is a bold statement. If accurate, it supports his argument that selling when he did made more sense than holding on and risking a much lower valuation later.

How the lawsuit, market slowdown, and Call of Duty all collide

The lawsuit Kotick is responding to was filed by Swedish pension fund Sjunde AP-Fonden, also known as AP7, in Delaware’s Court of Chancery in 2022. The fund claims Kotick rushed the Microsoft deal in late 2021 “to avoid the consequences of sexual misconduct scandals swirling around the company” and to secure additional personal compensation. AP7 is seeking extra payments for shareholders and has even tried to invalidate the deal.

Kotick’s formal Answer does more than deny those claims. As reported by Game File, it also attempts to shift blame by suggesting another publisher could benefit from the lawsuit.

Kotick and his lawyers wrote:

Swedish company, Embracer rejected the claim, telling Game File that “we did not and do not need any help from a Swedish pension fund in competing with Activision.”

He claims the company would have been worth less without the buyout, stating that “had the deal not gone through, this would have likely resulted in a substantially lower stock price.”

The most eye-catching part of his defense focuses on Call of Duty. Kotick claims:

He repeats the figure while taking aim at the U.S. Federal Trade Commission’s attempt to block the deal, stating: “Call of Duty is on track to perform over 60% below last year because of intense competition from titles like Battlefield.”

As Game File notes, Kotick has not provided evidence for the 60% figure, and Microsoft and Activision have not released full sales data for Black Ops 7. Industry tracker Circana has reported that November full game dollar sales of Black Ops 7 finished below those of Black Ops 6 last year, confirming the franchise is facing a real sales decline.

However, there is some weight to the all-time low console sales claim. November 2025 was the worst month for physical video game software and hardware sales since November 1995.

November is usually a strong sales period thanks to Black Friday and Cyber Monday. Last year, however, rising costs across the industry, thanks to AI, made it harder for retailers to offer meaningful discounts.

This also does not take Game Pass into account. Microsoft’s subscription service includes the yearly Call of Duty release on its Ultimate tier, which can have a major impact on full game sales. Reporting from Bloomberg suggested that Microsoft lost out on $300 million with the release of Black Ops 6 onto Game Pass.

Do you believe Call of Duty is really down 60%, or is Kotick using selective numbers to defend the Microsoft deal? Share your take in the comments or by taking part in our poll below:

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