The alarm bells ringing in Redmond are not just a distant chime; they're a full-blown siren blaring across the gaming industry. Bobby Kotick, the former Activision boss, has dropped a bombshell, claiming that the latest Call of Duty entry, Black Ops 7, is down a staggering 60% in sales compared to its predecessor. For long-time players and industry watchers like us, this isn't just a misfire; it's a stark revelation that could reshape the future of one of gaming's biggest franchises.

Our analysis suggests this isn't simply a bad quarter. This 60% dip, revealed during Kotick's defense against an investor lawsuit, paints a grim picture. We've watched the Call of Duty franchise evolve, dominate, and occasionally stumble over two decades, but a decline of this magnitude is unprecedented. It’s a harsh reality check for a series that has historically been an annual juggernaut, a tentpole release guaranteed to print money.

The Kotick Defense: A Shield of Declining Sales

The backdrop to this revelation is as messy as a lobby after a particularly bad matchmaking session. A group of investors, backed by a Swedish pension fund (AP-7), are suing Kotick, alleging he rushed the $69 billion sale of Activision to Microsoft to insulate himself from widespread sexual harassment scandals. They claim his valuation of $95 per share was too low. But Kotick, ever the operator, is using the franchise's current woes as his primary defense.

As reported by Game File, Kotick stated: “Today, given that console sales are at an all-time low and Call of Duty sales are off over 60% from the prior year, Plaintiff should be expressing extreme gratitude for the foresight Activision leadership demonstrated in consummating this transaction.” It’s a bold move, effectively telling investors they should be thankful he secured the deal before the ship truly started to sink.

Key Allegations and Kotick's Counter-Arguments:

  • Investor Allegation: Kotick rushed the sale to Microsoft.
  • Kotick's Defense: Foresight in securing the deal given market conditions.
  • Investor Allegation: $95 per share valuation was too low.
  • Kotick's Defense: Sales are down 60%; the deal was a win.
  • Investor Allegation: Sale insulated him from scandals.
  • Kotick's Defense: Focus on economic realities, not personal motives.

Beyond the Bombshell: A Troubled Franchise and Market

While we might scratch our heads wondering exactly where Kotick is pulling his 60% figure, a man of his standing wouldn't throw around such numbers without significant internal data. This figure isn't just a random stat; it corroborates what many of us have suspected and what Activision itself tacitly admitted late last year.

We saw the writing on the wall when Activision released an unprecedented statement, essentially apologizing for Black Ops 7's "misfire" and vowing to never again release back-to-back sub-franchise installments. That kind of panicked note to players is rare, and it signals a serious struggle within the development cycle and a critical lack of confidence in their current live-service model.

Kotick also points to a wider issue: lagging console hardware sales. He's not wrong. Our intelligence suggests console sales are indeed at an all-time low in the US, with November's numbers being the worst on record in 30 years. Even the much-hyped launch of the Switch 2 earlier in 2025 hasn't been enough to fully turn the tide globally. This confluence of factors creates a perfect storm for a franchise that relies on a massive player base and consistent hardware upgrades.

The FTC Showdown and Microsoft's Gambit

In a final jab, Kotick also took aim at the FTC, who famously tried to block the Microsoft acquisition. He argued: “Call of Duty is on track to perform over 60% below last year because of intense competition from titles like Battlefield – destroying the FTC’s now defeated argument about Call of Duty’s purported monopoly and the lack of competition in the first-person action game category.” This is a classic strategic move, using the current decline to retroactively dismantle a past regulatory argument. It’s certainly a bold play, but it doesn't quite mask the underlying problem.

So, what does this mean for Microsoft? They shelled out $69 billion for Activision Blizzard, with Call of Duty being a crown jewel. While we're sure Microsoft will attempt to bury these numbers under a mountain of AI initiatives in their upcoming financials, the sheer scale of CoD's decline will be hard to hide. This isn't a small nerf; it's a fundamental shift that impacts their entire gaming division.

And let's not forget the looming threat of Grand Theft Auto VI this Christmas. Facing off against a juggernaut like Rockstar's next epic, with a foundational franchise bleeding players and sales, is not where Microsoft wants to be. The current strategy for Call of Duty clearly isn't working, and a mere QoL update won't cut it. This franchise needs a fundamental reboot, a significant pivot in its dev cycle, or it risks falling further behind. Good luck, Xbox. You're going to need it.