Here's a timeline of Activision Blizzard's terrible week, as it faces fan protests after an esports athlete was punished for voicing support for Hong Kong

Kevin Webb



"Hearthstone" player Blitzchung launched an international controversy after 
he called for the liberation of "Hong Kong" in a post-match interview. Invent Global

A vocal group of fans are boycotting Activision Blizzard after the company punished an esports competitor who spoke out in support of the protests in "Hong Kong.'
Chung Ng Wai, the esports competitor better known as Blitzchung, shouted "Liberate Hong Kong, revolution of our age" in Chinese amid a post-match interview at a Blizzard-sponsored "Hearthstone" tournament in Taiwan on October 5.
Blizzard responded by stripping Blitzchung of his prize money and barring him from "Hearthstone" competitions for one year. Blizzard said Blitzchung's comments had violated the competition rules by damaging the company's image. It later walked back the punishment, reducing it down to 6 months.
Critics have accused the California-based studio of prioritizing its relationship with China instead of protecting free speech — something it denied in a statement issued on Friday night.
The controversy has the potential to spill over into BlizzCon, Blizzard annual fan convention scheduled for November 1st. A group called Fight for the Future plans to organize a protest at the event, to be held in Anaheim, California.

Activision Blizzard is dealing with a fan revolt and intense public scrutiny after punishing Blitzchung — a Hong Kong-based esports competitor who voiced support for Hong Kong's protesters during a Blizzard-run event on October 5.

Blitzchung, whose real name is Chung Ng Wai, is a grandmaster-level player in "Hearthstone," Blizzard's very popular digital card game.

During Blizzard's official broadcast of the Asia-Pacific Grandmasters competition, Blitzchung appeared in a post-match interview wearing a gas mask. As the broadcast ended, Blitzchung shouted "Liberate Hong Kong, revolution of our age," with the apparent support of the two tournament broadcasters.

Blizzard responded to Blitzchung's comments on October 8 by stripping him of about $3,000 in prize money he had already earned for the tournament, and barred him from "Hearthstone" competitions for one year. Blizzard also said it would no longer work with the two broadcasters who were interviewing Blitzchung during his comments. The company deleted the match and interview footage from its official channels as well.

In the blog post announcing Blitzchung's ban, Blizzard said "we stand by one's right to express individual thoughts and opinions," but Blitzchung's comments were deemed to be harmful to the company.

In a follow-up statement issued on Friday night, Blizzard said that it was reducing his suspension (and that of the broadcasters) to six months, and restoring his prize money — though mostly otherwise stood by its earlier positions.

Here's a timeline of Blizzard's terrible week, as fans and politicians expressed their outrage over how the company handled the episode:

Critics accused Blizzard of prioritizing its business interests in China instead of protecting free speech.


"World of Warcraft" is one of Blizzard's most popular games
 "World of Warcraft Classic"/Blizzard Entertainment

Blizzard's decision has sparked outrage from Americans, who say Blitzchung's comments should be protected as free speech — especially given that Blizzard is an American company. Supporters of the protests in Hong Kong accused Blizzard of compromising its principles to protect its business interests in China.

Hong Kong has been under a condition of civil unrest for more than four months. Millions of people have marched to demand sovereignty from mainland China and protest its socioeconomic conditions. The ongoing protests have already garnered international attention, with the territory's increasingly complex relationship with China's communist government as a core issue.

China spends more money on video games than any other country in the world, making the market a vital part of Blizzard's business. Tencent, one of China's biggest companies and the largest video-game publisher in the world, owns a 5% stake in Blizzard's parent company, Activision Blizzard.

Blizzard is the latest American company to face criticism for its relationship to China. The NBA is also embroiled in its own controversy involving Hong Kong and China after Houston Rockets General Manager Darryl Morey shared a tweet in support of the protests. Morey later apologized and deleted the tweet, but the situation has strained the league's relationship with China.

Blizzard's decision drew criticism from US Senators and fellow video game makers.


Blizzard Entertainment

Republican Sen. Marco Rubio and Democratic Sen. Ron Wyden of Oregon were among the many voices that came to Blitzchung's defense, accusing Blizzard of censorship.

"Blizzard shows it is willing to humiliate itself to please the Chinese Communist Party," Wyden tweeted. "No American company should censor calls for freedom to make a quick buck."

Epic Games, the company behind "Fortnite," issued a statement saying that no "Fortnite" players would be punished for sharing their opinion on politics and human rights. Though 40% of Epic is owned by Tencent, China's largest video game publisher, CEO (and majority shareholder) Tim Sweeney said he would "never" allow this sort of punishment for a player.


Outraged fans have vowed to boycott Blizzard games until the company changes its stance on the Hong Kong protests.


Fans filled the Barclays Center in Brooklyn, New York for the finale of
 Blizzard's "Overwatch League." Overwatch League

Upset fans have flooded message boards for Blizzard's most popular games with posts calling for boycotts of Blizzard. The main Reddit board dedicated to Blizzard titles, "r/Blizzard," was temporarily set to private mode on October 8 by the moderators because of the intense backlash. A few posters who shared messages about Hong Kong on Blizzard's own forums had their accounts banned from the site until the year 3019.

"#BlizzardBoycott" became a trending hashtag on Twitter as dozens of people shared screenshots of themselves deleting their Blizzard accounts or canceling subscriptions to Blizzard's "World of Warcraft."

As the public backlash continued, Blizzard employees and esports contractors alike expressed frustration and concern with the company's stance.


An orc statute from the center of Blizzard Entertainment's campus. Activision / Blizzard Entertainment

Hours after Blizzard announced Blitzchung's ban, a former Blizzard employee tweeted that some backlash seemed to be brewing internally: Someone had covered up two of the company's key values — "Think Globally" and "Every Voice Matters" — enshrined on a statue at the company's headquarters.

On October 9, a group of some 30 Activision Blizzard employees staged a walkout to protest the company's punishment of a Hong Kong-based esports competitor who made a political statement during a Blizzard event in Taiwan, according to a report from Blake Montgomery of The Daily Beast.

A photo shared with The Daily Beast and posted on Imgur showed several employees holding umbrellas — an object that has become symbolic of the protests in Hong Kong.

On October 10, Justin "Jayne" Conroy, an coach for a Dallas-based esports team in Activision Blizzard's Overwatch League, was reportedly ordered to delete a tweet that criticized Blizzard's punishment of Blitzchung.

A few hours before Jayne's tweet, "Hearthstone" commentator Brian Kibler announced that he would decline working with the company for the finals of its Grandmasters competition. Though Kibler agreed that Blitzchung had violated the company's policies, he said the punishment seemed too harsh for the situation. Two days later, another "Hearthstone" commentator, Nathan "Admirable" Zamora said he was withdrawing from the event as well.


Some people have started using one of Blizzard's characters as a mascot for the protest, in hopes of straining Blizzard's relationship with China.


Mei from "Overwatch," in her Lunar New Year attire. Blizzard Entertainment

A group of gamers latched onto the idea of co-opting Mei, a Chinese character from Blizzard's "Overwatch," for pro-protest messages. The idea was an attempt to sour China's relationship with Blizzard. China's government has strict regulations on what games are released in the country, and games that promote deeply political messages or rebellion against the government are specifically prohibited.

While Mei isn't normally much of a rebel in her game, fans have taken liberties with her design to make her an emblem of the protests in Hong Kong. This includes draping her in the design of Hong Kong's flag and drawing pictures of her wearing symbols of the protests, like umbrellas and gas masks.

Blizzard's annual fan convention is less than a month away, and a mass protest of the event could be on the horizon.


Blizzard

BlizzCon, Blizzard's fan annual convention, is scheduled for the weekend of November 1. The company typically holds its biggest announcements of the year for the BlizzCon stage, but this year's event could have a much different tone.

An organization called Fight for the Future is organizing a protest to coincide with BlizzCon in Anaheim, California, according to Vice, and protest signs have recently been spotted at official Blizzard esports events.

With less than a month until the company's largest event, the world will be watching to see what Blizzard does next.

On Friday night, Blizzard President J. Allen Brack issued a statement saying that its ‘relationships in China had no influence on our decision’ to punish Blitzchung.

Blizzard Entertainment

In the statement, Brack says that Blitzchung violated Blizzard's rules around keeping its official channels focused on the game, but that it was walking back his suspension to only six months — and the same again for the on-air casters involved. Brack also indicated that "we now believe he should receive his prizing," though he didn't offer specifics.

You can read the full statement here.

INSIDE BLIZZARD
REGARDING LAST WEEKEND’S HEARTHSTONE GRANDMASTERS TOURNAMENT
Blizzard Entertainment

October 12, 2019

Hello Blizzard Community . . .

I want to take a few minutes to talk to all of you about the Hearthstone Grandmasters tournament this past weekend. On Monday, we made the decision to take action against a player named blitzchung and two shoutcasters after the player shared his views on what’s happening in Hong Kong on our official broadcast channel.

At Blizzard, our vision is “to bring the world together through epic entertainment.” And we have core values that apply here: Think Globally; Lead Responsibly; and importantly, Every Voice Matters, encouraging everybody to share their point of view. The actions that we took over the weekend are causing people to question if we are still committed to these values. We absolutely are and I will explain.

Our esports programs are an expression of our vision and our values. Esports exist to create opportunities for players from around the world, from different cultures, and from different backgrounds, to come together to compete and share their passion for gaming. It is extremely important to us to protect these channels and the purpose they serve: to bring the world together through epic entertainment, celebrate our players, and build diverse and inclusive communities.

As to how those values apply in this case:

First, our official esports tournament broadcast was used as a platform for a winner of this event to share his views with the world.

We interview competitors who are at the top of their craft to share how they feel. We want to experience that moment with them. Hearing their excitement is a powerful way to bring us together.

Over the weekend, blitzchung used his segment to make a statement about the situation in Hong Kong—in violation of rules he acknowledged and understood, and this is why we took action.

Every Voice Matters, and we strongly encourage everyone in our community to share their viewpoints in the many places available to express themselves. However, the official broadcast needs to be about the tournament and to be a place where all are welcome. In support of that, we want to keep the official channels focused on the game.

Second, what is the role of shoutcasters for these broadcasts?

We hire shoutcasters to amplify the excitement of the game. They elevate the watchability and help the esports viewing experience stay focused on the tournament and our amazing players.

Third, were our actions based on the content of the message?

Part of Thinking Globally, Leading Responsibly, and Every Voice Matters is recognizing that we have players and fans in almost every country in the world. Our goal is to help players connect in areas of commonality, like their passion for our games, and create a sense of shared community.

The specific views expressed by blitzchung were NOT a factor in the decision we made. I want to be clear: our relationships in China had no influence on our decision.

We have these rules to keep the focus on the game and on the tournament to the benefit of a global audience, and that was the only consideration in the actions we took.

If this had been the opposing viewpoint delivered in the same divisive and deliberate way, we would have felt and acted the same.

OK, what could Blizzard have done better, and where do we go from here?

Over the past few days, many players, casters, esports fans, and employees have expressed concerns about how we determined the penalties. We’ve had a chance to pause, to listen to our community, and to reflect on what we could have done better. In hindsight, our process wasn’t adequate, and we reacted too quickly.

We want to ensure that we maintain a safe and inclusive environment for all our players, and that our rules and processes are clear. All of this is in service of another important Blizzard value—Play Nice; Play Fair.

In the tournament itself blitzchung *played* fair. We now believe he should receive his prizing. We understand that for some this is not about the prize, and perhaps for others it is disrespectful to even discuss it. That is not our intention.

But playing fair also includes appropriate pre-and post-match conduct, especially when a player accepts recognition for winning in a broadcast. When we think about the suspension, six months for blitzchung is more appropriate, after which time he can compete in the Hearthstone pro circuit again if he so chooses. There is a consequence for taking the conversation away from the purpose of the event and disrupting or derailing the broadcast.

With regard to the casters, remember their purpose is to keep the event focused on the tournament. That didn’t happen here, and we are setting their suspension to six months as well.

Moving forward, we will continue to apply tournament rules to ensure our official broadcasts remain focused on the game and are not a platform for divisive social or political views.

One of our goals at Blizzard is to make sure that every player, everywhere in the world, regardless of political views, religious beliefs, race, gender, or any other consideration always feels safe and welcome both competing in and playing our games.

At Blizzard, we are always listening and finding ways to improve—it is part of our culture. Thank you for your patience with us as we continue to learn.

Sincerely,

J. Allen Brack
President of Blizzard Entertainment

SEE ALSO: Blizzard is under scrutiny from lawmakers, gamers, and maybe even its own employees after punishing a 'Hearthstone' competitor who voiced his support for protesters in Hong Kong 

SEE ALSO:-based game company Blizzard bans pro esports player and confiscates his prize money after he voices support for Hong Kong protest 

Activision Blizzard Staff Announce Start of New Strike Action

The ABK Workers Alliance has also set up a strike fund.

By Matt Purslow
Updated: 9 Dec 2021 8:36 am

The ABK Workers Alliance, a collective of Activision Blizzard and King employees, has initiated strike action against its employer. The group plans to continue its work stoppage until its demands are met. This follows walkouts from other Activision Blizzard groups, including Raven’s QA department.

Announced via a post on Twitter, the group said “Today, the ABK Worker's Alliance announces the initiation of its strike. We encourage our peers in the Game Industry to stand with us in creating lasting change.”

In addition, the Tweet also includes a link to a Gofundme page, which allows supporters to provide financial donations to help participating Activision Blizzard and King staff through their work stoppage. “For those who wish to join in solidarity, please consider donating to our Strike Fund,” said the tweet. The fund has a goal of $1 million.

The announcement of the ABK Workers Alliance strike follows Monday’s news of Raven Software's QA team walkout over the termination of contractors. Striking staff were supported by other Activision Blizzard workers in solidarity, with further walkouts happening in Texas, Minnesota, and California.

Activision Blizzard employees launch strike fund, move closer to unionizing


(Washington Post illustration; Activision Blizzard; iStock)


By Shannon Liao

WASHINGTON POST

Today at 10:41 a.m. 

Activision Blizzard employees are creating a strike fund for workers who have been participating in a work stoppage since Monday.

Employees, in collaboration with media labor union Communications Workers of America, are asking workers to sign a union authorization card, which could eventually lead to a companywide vote on forming a union.

The strike fund is being listed on a GoFundMe page with a goal of $1 million, which would be used for the current work stoppage and future strikes. Company management told workers that they would be paid their wages for Monday through Wednesday of the walkout but not beyond, according to emails shared with The Post. If workers continue striking Thursday and onward, they will be unpaid or will have to use their own accrued paid time off.

The video games industry in the United States is not unionized, so a move to get workers to sign union cards is notable. It brings Activision Blizzard workers one step closer to organizing, although those who sign the authorization cards are not obligated to join a union.

Why is the games industry so burdened with crunch? It starts with labor laws.

One current Activision worker who requested anonymity for fear of retaliation said she signed the union card because “it’s the only option.”

“Do we want to work for a company that has a history of not only sexual abuse and protecting abusers but also sporadic layoffs that may hit us at anytime, especially as a contract QA worker? Or do I risk losing my job to try and make a change?" she said.

The GoFundMe page was created by Blizzard senior test analyst Jessica Gonzalez, who told The Post she was giving her 3-year-old child a bath while organizing the strike fund on gaming messaging app Discord. The effort coincides with Thursday’s Game Awards, a significant annual red-carpet event for the games industry in Los Angeles. It’s a time when some of the most eyeballs are on the games industry, and workers planned around that.

“Workers deserve better, and [CEO] Bobby Kotick is continuing to ignore us,” Gonzalez said Wednesday evening. Gonzalez had announced her resignation from the company in late November; her last day is Friday.

Over 60 workers at Raven Software, an Activision Blizzard-owned game studio, walked out of work Monday in protest of their parent company laying off 12 of the studio’s quality assurance testers on Friday. Hundreds of workers across Activision Blizzard joined Raven Software contractors in solidarity, and in protest of the layoffs.

Activision Blizzard workers have walked out three times in five months since the gaming company was sued in late July over sexual harassment and gender-based discrimination allegations.

At Blizzard, groping, free-flowing booze and fear of retaliation tainted ‘magical’ workplace

“Activision Blizzard just continues to show us all how to not effectively manage a business. And, as a longtime Blizzard player, it breaks my heart and as a trade unionist, it’s pretty infuriating, but I think this latest controversy at Raven is, again, entirely self inflicted on management’s part,” said Communications Workers of America (CWA) organizing director Tom Smith, who helped with the strike fund effort. “Their only path forward for this company is to meet the righteous demands laid out in the original walkout and committed to higher labor standards, which center workers having a meaningful voice and all company matters.”

Activision Blizzard did not immediately respond to a request for comment from The Post.

Over the past several months, Activision Blizzard has come under fire from many directions. In addition to the lawsuit from California’s Department of Fair Employment and Housing, it is also under investigation by the U.S. Securities and Exchange Commission and is being sued in an August class-action suit from shareholders alleging violation of federal securities laws. Additionally, there is an unfair labor practice complaint against the company filed by workers and the CWA.

Inside the Activision Blizzard lawsuit

On July 20, California’s Department of Fair Employment and Housing (DFEH) filed a lawsuit against video game publisher Activision Blizzard, alleging widespread, gender-based discrimination and sexual harassment. Here’s what you need to know:

The lawsuit followed an investigation by the DFEH that began in 2018 in response to complaints from Activision Blizzard employees. Activision Blizzard disputes the allegations, saying the lawsuit’s claims were “distorted, and in many cases false.”

17 current and former employees interview by The Post detailed a workplace culture where women faced multiple incidents of harassment from men in leadership positions, and alcohol was free-flowing.

A Nov. 16 report from The Wall Street Journal alleged that Activision Blizzard CEO Bobby Kotick was aware of sexual misconduct allegations at the company but did not inform the board of directors. The report resulted in an employee walkout, a letter from an Activision shareholder group and a petition signed by employees demanding the resignation of several executives, including Kotick.

The DFEH lawsuit alleges that J. Allen Brack, the president of Blizzard Entertainment, was personally aware of employee complaints of sexual harassment directed at men with senior positions at the company. It also alleges he did not effectively mitigate those issues. Brack stepped down from his position as president on Aug. 3. The same day, Activision Blizzard confirmed that an executive in Blizzard’s human resources department was no longer with the company.

In response to the lawsuit and the ensuing statements of company leaders, Activision Blizzard employees wrote an open letter to the company’s leadership on July 26, rebuking them what they perceived to be an “abhorrent and insulting” response to the lawsuit. Employees also organized a walkout July 28.

Several sponsors for Activision Blizzard-run esports leagues have pulled back advertising, The Post reported Aug. 5.

Content creators on Twitch and YouTube who often feature games made by Activision Blizzard have wrestled with how to approach the topic on their streams and videos.
Legal experts are interested in the outcome of the lawsuit, noting that the DFEH is highly selective in the cases it chooses to fight in court and that the suit could set a precedent for California labor law.

The U.S. Securities and Exchange Commission is also investigating Activision Blizzard, and has subpoenaed the company and several current and former employees. In a statement, Activision Blizzard said it was cooperating with the investigation.

Learn more about this story and the rest of the video game industry by following Launcher on Twitter and subscribe to Launcher on YouTube and Instagram.

Mismanagement and cut costs doomed Warcraft 3: Reforged, a new report finds

Insiders claimed the reviled remake was never treated as a priority by Activision

(Image credit: Blizzard)

By Natalie Clayton

 3 days ago

Warcraft 3 Reforged's underwhelming release was the result of budget cuts, mismanagement, and internal disputes, a recently-released report from Bloomberg has found.

Released last February, Reforged arrived in a shocking state. Not only was the remake missing many of the planned grand, sweeping updates to the game's art and voiceover, but it retroactively ruined the original 2002 Warcraft 3—wholesale replacing its online service with one lacking basic features like competitive ladders.

In the new report, sources write that Warcraft 3 suffered from constant instances of miscommunication and financial pressures. Planned improvements were scrapped as the game was rescoped. Arguments flared over the game's art style and scope. The head of Blizzard's Classic Games team, Rob Bridenbecker, was accused of having an "aggressive management style", as well as frequently taking trips out of the country during production.

“We have developers who have dealt with exhaustion, anxiety, depression and more for a year now," developers wrote in an internal post-mortem obtained by Bloomberg. "Many have lost trust in the team and this company. Many players have also lost trust, and the launch certainly didn't help an already rough year for Blizzard's image."

Reforged also faced pressures from corporate owners Activision, which didn't prioritise a throwback RTS with little hope of becoming a blockbuster success. Mass layoffs across the company in 2019 didn't help, and with pre-orders opening long before the game was complete, the team was constantly having to "resist the urge to ship an unfinished product because of financial pressure."

"We took pre-orders when we knew the game wasn't ready yet," a post-mortem writer explained.

The report goes further into how the Classic Games team was largely maligned by Blizzard, and how management at Blizzard was "out of touch" with the project until extremely late in development. But the report ultimately blames Activision's increasing influence over Blizzard post-merger, pushing the developer to focus only on its stable of billion-dollar games like World of Warcraft and Overwatch.

This report comes hot on the heels of a lawsuit filed against Activision Blizzard by the California Department of Fair Employment and Housing accusing the publisher of a "frat boy workplace culture" that saw women paid demonstrably less than their male colleagues and subjected them to "constant sexual harassment".

Warcraft 3’s Remake Faced Mismanagement, Budget Cuts, And Premature Release

BY ANDREA SHEARON

PUBLISHED 3 DAYS AGO

A new report sheds light on the internal conflict the Warcraft 3 team faced.


Following the allegations surrounding Blizzard’s toxic work culture, a new report also reveals that its projects began to suffer following the Activision acquisition. Warcraft 3 Reforged launched early last year to poor reception, and now it’s understood to be from serious mismanagement, budget cuts, and a premature release.

In a new report from Bloomberg, the internal strife at Blizzard points to earlier beginnings around the Activision acquisition and with the departure of co-founder Mike Morhaime. The report indicates that growing pressures from Activision to reduce costs, talent departures, and wage disputes led to growing discontent within the company. These allegations come just a day after the state of California filed a lawsuit against Activision Blizzard for its “pervasive frat boy workplace culture.”

As Bloomberg reported, morale on the team took a harsh nose dive as the project began to flounder. Reforged’s team began “worrying that they had promised more than they could deliver.” Problems led back to head of the Classic Games team Rob Bridenbecker, who was “known for his aggressive managerial style,” and often held expectations that the team could not deliver on.

The small team continued to struggle as its budget was cut, forcing employees to take on multiple job roles and fall into crunch. That’s when the Bloomberg report suggests that the project began to see cuts to features and trashed work that was already completed. Instead of adding new cinematics and voice-over like Blizzard had promised, they were forced to use materials from the original.

The developers voiced their frustrations with leadership, noting that senior members of the team sounded the alarm on unrealistic expectations several times and flagging the project as something that was in trouble. It was not until the very end that Blizzard finally brought in help, but it still didn’t save the project. Ultimately, Reforged launched far too early, held to a tight deadline that wasn’t typical of older leadership, and the company offered refunds to those who were upset with the project.

In 2021, Reforged remains mostly in the same messy state it launched in. Bloomberg's report mentions Blizzard has brought on a new team to helm changes to the game after Classic Games was dismantled, but we've yet to see the results of that work.

Report: Blizzard's misfiring Warcraft III remake was the result of cost-cutting and mismanagement

July 23, 2021 | By Chris Kerr

The rocky launch of Warcraft III: Reforged was the result of mismanagement and financial upheaval at Blizzard Entertainment.

According to a report from Bloomberg, which spoke with people familiar with the project and managed to obtain an internal postmortem, Blizzard seemingly chose to prematurely release the long-awaited remake knowing it was going to underdeliver.

Despite being branded a "monumentally important" project by Blizzard president J. Allen Brack when it was announced in 2018, Reforged was never truly backed by the studio's parent company Activision Blizzard, which reportedly pushed the developer to cut costs and refocus on other, bigger titles.

That left Blizzard in a precarious situation, with the studio having already promised hefty updates including over four hours of updated in-game cutscenes and re-recorded voice-overs. Ultimately, the company failed to implement those features and offered a number of excuses including not wanting cutscenes to "steer too far from the original game."

It also struggled to bring over features from the original Warcraft III, such as the 'ladder' competitive ranking system, turning the remake into a hollow impersonation of the original release.

Apologies were issued and "no-questions-asked" refunds were dished out, and yet it seems like Blizzard knew exactly what it walking into. In an internal postmortem, a number of Reforged developers said the company "took pre-orders when we knew the game wasn't ready yet," and said the team struggled to "resist the urge to ship an unfinished product because of financial pressure."

Another Blizzard spokesperson told Bloomberg that "in hindsight, we should have taken more time to get [Reforged] right, even if it meant returning pre-orders." As many developers began to realize the scale of the problem facing Reforged, infighting began and morale nosedived.

Those in the know said an aggressive management style, perpetuated by the head of Blizzard's Classic Games team, Rob Bridenbecker (who declined to comment on the report), coupled with unrealistic deadlines and scoping issues sparked arguments and left a number of developers with physical and mental health problems.

"We have developers who have dealt with exhaustion, anxiety, depression and more for a year now. Many have lost trust in the team and this company. Many players have also lost trust, and the launch certainly didn't help an already rough year for Blizzard's image," reads the postmortem. "We were missing and/or had the wrong people in certain lead roles. The team structure didn't set up the project for success."

Bloomberg's report on Reforged, which you can read in full right here, comes hours after the state of California sued Activision Blizzard for instilling a sexist, harmful workplace culture.

The lawsuit contains a number of shocking allegations obtained by the California Department of Fair Employment and Housing (DFEH), all of which suggest Activision Blizzard promotes a "frat boy" culture that results in systemic harassment and misconduct. Responding to those allegations, Activision Blizzard said it values diversity and inclusivity, and described the DFEH's report as "distorted" and "false."

Activision Blizzard’s Labor Woes Grow on Union Complaint to NLRB

Josh Eidelson
Tue, September 14, 2021


(Bloomberg) -- A union has filed a federal labor board complaint against Activision Blizzard Inc., opening a new front in the legal battle over workplace rights at the video game maker.

The U.S. National Labor Relations Board complaint, filed by the Communications Workers of America, accuses Activision of violating federal labor law through coercive rules, actions and statements.

“The employer has threatened employees that they cannot talk about or communicate about wages, hours and working conditions,” according to a copy of the complaint obtained through a public information request. The document also accuses Activision of illegally telling staff they can’t discuss ongoing investigations; threatening or disciplining employees because of their activism; deploying surveillance and interrogations targeting legally protected activism; and maintaining a social media policy that infringes on workers’ rights.

The agency’s docket shows that CWA’s complaint was filed Sept. 10. Activision didn’t reply to requests for comment Tuesday.

Activision Blizzard, which creates games like Call of Duty and World of Warcraft, is embroiled in controversy over its treatment of employees. California’s Department of Fair Employment and Housing sued Activision in July, alleging the company fostered a “frat boy” culture in which female employees were subjected to sexual harassment, pay inequality and retaliation. Days later, an employee walkout drew hundreds of demonstrators to the sidewalks of the company’s corporate campus in Southern California.

In a July email to employees, Activision’s chief compliance officer, who served as Homeland Security Advisor to President George W. Bush, called the California agency’s claims “factually incorrect, old and out of context.” Activision has also said that the picture painted in the lawsuit “is not the Blizzard workplace of today” and that the company values diversity and strives to “foster a workplace that offers inclusivity for everyone.”

Complaints filed with the labor board are investigated by regional offices and, if found to have merit and not settled, can be prosecuted by the agency’s general counsel and heard by administrative law judges. The rulings can be appealed to NLRB members in Washington, D.C., and from there to federal court. The agency can require remedies such as posting of notices and reversals of policies or punishments, but has no authority to impose punitive damages.

CWA, which has increasingly focused in recent years on organizing non-union video game and tech workers, said in an emailed statement that it was “very inspired by the bravery” of Activision employees and that it filed with the labor board to ensure that violations by the company “will not go unanswered.”

Activision Blizzard workers accuse company of violating federal labor law

Jon Fingas
·Weekend Editor
Tue, September 14, 2021


Activision Blizzard is facing still more legal action over its labor practices. As Game Developer reports, Activision Blizzard workers and the Communication Workers of America have filed a complaint with the National Labor Relations Board accusing the game developer of using coercion (such as threats) and interrogation. While the filing doesn't detail the behavior, the employee group ABetterABK claimed Activision Blizzard tried to intimidate staff talking about forced arbitration for disputes.

Companies sometimes include employment clauses requiring arbitration in place of lawsuits. The approach typically favors businesses as arbitrations are often quicker than lawsuits, deny access to class actions and, most importantly, keep matters private. Work disputes are less likely to reach the public eye and prompt systemic change. Tech firms like Microsoft have ended arbitration for sexual harassment claims precisely to make sure those disputes are transparent and prevent harassers from going unchecked.

It's not clear how Activision Blizzard intends to respond. We've asked the company about the complaint. The NLRB has yet to say if it will take up the case.

The gaming giant has taken some action in response to California's sexual harassment lawsuit, dismissing three senior designers and a Blizzard president after they were referenced in the case. It has so far been reluctant to discuss structural changes, though. The NLRB complaint might intensify the pressure for reform, and certainly won't help Activision Blizzard's image.



Activision Blizzard Hires Disney’s Julie Hodges as HR Chief in Wake of Sex Harassment Scandal

Todd Spangler
Tue, September 14, 2021



Activision Blizzard has hired Julie Hodges, a 32-year veteran of the Walt Disney Co., as its chief people officer.

Hodges joins the games giant effective Sept. 21, replacing Claudine Naughton, whom Activision Blizzard said is “leaving the company.” The change in HR leadership at the company comes two months after it was hit with a lawsuit from the California Department of Fair Employment and Housing, alleging that Activision Blizzard allowed a “pervasive frat boy workplace culture” to thrive that resulted in women employees being continuously subjected to sexual harassment and being paid less than men.

Other senior execs who have exited Activision Blizzard in the wake of the lawsuit included Blizzard Entertainment president J. Allen Brack, who was named in the California DFEH complaint as among company leaders who were allegedly aware of the misconduct and — despite repeatedly being informed of the problems — “failed to take effective remedial measures in response to these complaints.”

In announcing Hodges’ hire, Activision Blizzard CEO Bobby Kotick said that “Julie is the seasoned leader we need to ensure we are the most inspiring, equitable and emulated entertainment company in the world.”

Meanwhile, on Sept. 10, the Communications Workers of America’s Campaign to Organize Digital Employees (CODE-CWA) filed a complaint with the National Labor Relations Board against Activision Blizzard on behalf of company employees, alleging it illegally used “coercive tactics” to try to prevent workers from organizing a union following the California DFEH lawsuit, per Protocol.

In addition, Activision Blizzard on Tuesday said Sandeep Dube, formerly SVP of revenue management at Delta Airlines, will become chief commercial officer, effective Sept. 27. He is filling the role left vacant after Armin Zerza was promoted to CFO earlier this year.

“These two outstanding leaders from companies with exceptional reputations will help us achieve our goal of becoming the best company to work for in the entertainment industry while growing our reach, engagement and player investment,” Kotick commented.

In her 32 years at Disney, Hodges led HR for Walt Disney Parks and Resorts, the company’s Talent Acquisition Center of Excellence, HRBP for Worldwide Operations, and Disney University/Learning and Development, Organization Development and Cast Research. Hodges earned a bachelor’s degree from the University of North Carolina in Chapel Hill.

At Activision Blizzard, Hodges will be responsible for the company’s global talent organization, with the mission of making the company “the destination for top talent.” In her role, she will lead all aspects of human resources, including diversity, equity and inclusion, talent acquisition, employee experience, learning and development, compensation and benefits, and workforce planning.

Microsoft submits new Activision Blizzard plan in £54bn takeover battle 

with UK competition watchdog

August Graham, PA Business Reporter
Tue, 22 August 2023 

The competition watchdog stressed “this is not a green light” as it agreed to look at a fresh proposal from Microsoft which the company hopes will allow its 69 billion US dollar (£54 billion) takeover of Activision Blizzard to go ahead.

The global technology giant said it has submitted a new version of the blocked deal, which will now be reviewed by the Competition and Markets Authority (CMA).

It came as the regulator confirmed on Tuesday that Microsoft’s original plan to buy the computer games company “cannot proceed”.



Under the new proposal, Microsoft would sell off its rights to offer games via the cloud for new or existing Activision PC or console games for the next 15 years outside the European Economic Area (EEA).

It will instead sell those rights to Ubisoft, a rival developer known for the Assassin’s Creed and Far Cry games series.

This is designed to ensure that gamers have access to Activision Blizzard’s games, even on consoles and computers not made by Microsoft.

The CMA will now launch a new probe into this deal, a so-called Phase 1 investigation.

World Of Warcraft became globally popular after it was released by Blizzard Entertainment in 2004 (Paul Carstairs/Alamy/AP)

CMA chief executive Sarah Cardell said: “The CMA has today confirmed that Microsoft’s acquisition of Activision, as originally proposed, cannot proceed.

“Separately, Microsoft has notified a new and restructured deal, which is substantially different from what was put on the table previously

“This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments.”

Microsoft president Brad Smith said: “Under the restructured transaction, Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service, Xbox Cloud Gaming, or to exclusively control the licensing terms of Activision Blizzard games for rival services.”

The CMA locked horns with one of the world’s largest technology companies over the deal (Anna Ivanova/Alamy/PA)

It marks a new twist in the case, the biggest fight the CMA has taken on since gaining new post-Brexit powers. At one point the case looked like as though it would only end after a court battle.

In January 2022 Microsoft announced that it planned to buy Activision Blizzard, the company behind the Call Of Duty and World Of Warcraft games, for an eye-watering sum.

When the UK was still an EU member, a deal of that size would have been assessed by regulators in Brussels. But after Brexit the CMA now has the power to investigate such deals itself.

Although both companies are American, both have significant businesses in the UK so their tie-up could have a significant impact on competition here.

Activision Blizzard chief executive Bobby Kotick said: “For us, nothing substantially changes with the addition of this divestiture: our merger agreement with Microsoft, closing deadline, and the cash consideration to be paid for each Activision Blizzard share at closing remain the same.

“We will continue to work closely with Microsoft and the CMA throughout the remaining review process, and we are committed to help Microsoft clear any final hurdles as quickly as possible.

“This has been a longer journey than expected, and I am very proud of how focused everyone has remained on delivering great games.”

Why does Microsoft want to buy Activision Blizzard and will the deal go ahead?


Alan Martin and Vicky Jessop
Tue, 22 August 2023 

Activision’s biggest game is Call of Duty (Activision Publishing Inc)

Microsoft announced its intention to buy Activision Blizzard in January 2022. The story has popped up countless times since as more roadblocks appeared, and were navigated around.

One key one remains: the UK’s Competitions and Markets Authority (CMA).

The acquisition has been given the green light by EU and US regulators, but the CMA is still holding out. Why?

Any acquisition this size is a big deal. Microsoft plans to buy Activision Blizzard for £54 billion. It is one of the biggest game publishers out there, and clearly of higher value than Skyrim creator Bethesda Softworks, which was acquired by Microsoft for around £6 billion in 2021.

The big story was initially around Call of Duty, and whether it would become an Xbox-only series. Microsoft has now promised to bring Call of Duty to Sony PlayStation and Nintendo consoles for the next decade.

However, that has not placated the CMA. Its concerns hinge on cloud streaming, used in Microsoft’s Xbox Game Pass service. It argues the merger will be bad for consumers and innovation, by giving Microsoft an unfair advantage in the area.

In a last ditch attempt to get the deal through, Microsoft submitted a fresh proposal on August 22.

It would see Microsoft offload game streaming rights for Activision Blizzard games to Ubisoft, for PC and console titles released over the next 15 years. Microsoft would no longer determine which streaming services get the publisher’s games, Ubisoft would.

But why is Microsoft so keen on buying Activision Blizzard in the first place?

What games does Activision Blizzard make?

The biggie is Call of Duty or ‘CoD’. The military first-person shooter is one of the most popular games on the planet, and always elicits excitement when a new entry is released.

Both Activision and Blizzard have been in the business for decades, long before they merged in 2013 after Activision acquired Vivendi Games. They have plenty of beloved franchises beyond CoD, including Warcraft, Overwatch, and even Candy Crush, after the 2016 acquisition of mobile game maker King.

Here are the main ones:

Activision

Call of Duty


Crash Bandicoot


Spyro


Tony Hawk’s Pro Skater


Prototype


Hero (Guitar Hero, DJ Hero, Band Hero)


Candy Crush
Blizzard

Warcraft


Diablo


Overwatch


Starcraft


Hearthstone

These are just the main players and there are plenty of long-forgotten IPs that could be revived: think King’s Quest, Blur, Gabriel Knight, True Crime, and Gun.

Why is Microsoft trying to buy Activision Blizzard?

Overwatch 2 (Activision Blizzard)

While once known exclusively for home-computer software (Windows, Office, Outlook, Word, etc.) Microsoft now has fingers in many pies — and gaming is one of the biggest, thanks to the Xbox gaming division.

That would be reason enough to try to add one of the world’s biggest publishers into the fold, with exclusive games often helping decide console wars, and Microsoft currently fighting a losing battle against Sony’s PlayStation 5.

But having popular franchises such as Call of Duty, Overwatch, and Warcraft as part of the Microsoft stable is especially significant due to the company betting much on Game Pass — its ‘Netflix of games’ — where you can play a rolling selection of titles for a low-cost monthly subscription.

Microsoft’s games — including Gears of War, Forza, Halo, and Minecraft — are already included, and the company would love to add Activision’s titles to the platform to boost subscriber numbers.

What is the problem with Microsoft buying Activision Blizzard?

The reason the purchase has been bogged down by legal action is competition. By acquiring Activision Blizzard, critics argue, Microsoft’s gaming division would simply own too much of the industry, unfairly limiting its competitors and ultimately harming consumers.

In the US, the Federal Trade Commission (FTC) initially attempted to block the deal, with it voting three to one to issue a complaint against the buyout. In the UK, the CMA concluded that the move would ultimately result in higher prices, fewer choices, and less innovation for UK gamers.

But, following a string of victories, Micrososft’s takeover of Activision appears more likely to go ahead. An American judge vetoed the US Federal Trade Commission’s (FTC) attempt to block the deal. While the FTC has launched an appeal, the UK’s Competition and Markets Authority has halted its own legal battle.

Those hurdles included shortcomings in the regulatory remedies proposed by Microsoft in its bid to get the merger across the line. The tech giant signed cloud gaming deals with Boosteroid, Ubitus, and Nvidia to bring Xbox PC games to these services. It also signed a similar deal with Nintendo last December.

Many of critics’ problems come from exclusivity. To get the main benefit from an acquisition, many assume Microsoft would have to make future titles from Activision Blizzard exclusive to Xbox and PC, freezing out PlayStation gamers.

The Sony PS5 (PS5)

In terms of precedent for that, Microsoft has announced that Bethesda’s first game as a Microsoft studio — Starfield — won’t be appearing on PS5. It seems unlikely that a future Fallout of Elder Scrolls will either.

That said, Microsoft hasn’t pulled Minecraft from Sony or Nintendo platforms since purchasing the game back in 2014. And for its part, as part of the ongoing argument, Microsoft has offered to keep Call of Duty — the main prize of contention for rivals — on Sony and Nintendo platforms for a decade after the deal completes.

Microsoft president Brad Smith made the pledge in an opinion piece for the Wall Street Journal in December. He said that the deal was good for gamers because Microsoft was “third place in console gaming, stuck behind Sony’s dominant PlayStation and the Nintendo Switch”.

What would Microsoft buying Activision Blizzard mean for big games like World of Warcraft?

Those reassurances aside, the concerns of Microsoft’s rivals are that big franchises will either be exclusive to Xbox and PC, or be otherwise hobbled on other formats with weaker performance or less DLC.

Even if Microsoft were to continue releasing its games on other formats, its rivals are concerned that they can’t compete with the Game Pass offering, where paying £70 or more for top-tier games is replaced with a flat monthly subscription.

Blizzard’s games such as World of Warcraft and Starcraft, which have never had a console version, might be pushed on to Xbox in time, too. Though, given Microsoft has a substantial interest in Windows PCs, this wouldn’t necessarily be an urgent priority.
Is Microsoft’s takeover of Activision likely to go ahead?

Spyro Reignited Trilogy (Activision)

The UK’s CMA is the last major hurdle for the acquisition, after the deal was greenlit in key markets including the US and EU. Microsoft’s final gambit is the proposal to offload streaming rights for Activision Blizzard games released over the next 15 years to publisher Ubisoft, excluding existing agreements within the EEA.

“Under the restructured transaction, Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service—Xbox Cloud Gaming – or to exclusively control the licensing terms of Activision Blizzard games for rival services,” wrote Microsoft President on the company’s blog.

The CMA says it will decide on whether that plan is enough to allow the deal to pass through by October 18.

“This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments,” says the CMA.

What does this mean for gamers?

Gamers who feared Microsoft would renege on its promise to make Activision games widely available may be concerned about recent developments.

PlayStation owners, in particular, may have been sceptical about Microsoft’s assurances to keep CoD on Sony’s consoles for ten years. In fact, Microsoft had already indicated that it wasn’t interested in extending that commitment. It said thata decade was plenty of time for Sony to create a CoD rival, signalling that it was prepared to pull the rug out from underneath its competitor as soon as the deal timer ran out.

The UK also threw doubt over Microsoft’s plans to add Activision games to other gaming platforms, including Nintendo consoles.

In a bid to assuage regulators, the tech giant had struck high-profile deals to bring Xbox PC and Activision franchises, including CoD and Overwatch, to rival platforms. They included ten-year contracts with cloud-gaming services including NVIDIA Geforce Now, and smaller competitors such as Boosteroid and Ubitus. It also struck a similar deal with Nintendo in December.

If Microsoft loses its appeal, then it will essentially be up to Activision to secure similar licensing deals with these distributors. Seeing as the company removed its games from GeForce Now in 2020, and hasn’t restored them since, it clearly has some misgivings about cloud gaming.

Meanwhile, Microsoft’s Nintendo deal felt like lip service to regulators. The Japanese company is largely associated with family-friendly titles such as Mario, and already has access to Activision’s Overwatch games. CoD therefore felt like a mismatch for Nintendo. Nor does the Switch boast the computing power to run the latest CoD games.

All told, Activision will have little incentive to pursue a similar deal with Nintendo, should the merger fall apart.

Who owns Activision?

As of now, Activision Blizzard is still an independent, publicly traded company owned by its shareholders. A mixture of financial conglomerates and asset managers currently hold stakes in the gaming giant, including Warren Buffet’s Berkshire Hathaway, Vanguard Group, FMR LLC, and Blackrock.

The US-based video game firm was established in 2008 following the merger of Activision and Vivendi Games. The latter was the games division of French media conglomerate Vivendi, which owned Blizzard Entertainment and its blockbuster multiplayer game World of Warcraft.

Activision traces its roots back to 1979, when it was founded by a group of former Atari developers. Originally called Computer Arts, Inc., the team later changed the company’s name to a portmanteau of “active” and “television”. Thus, Activision was born.

Activision Blizzard CEO Bobby Kotick took the reins in 1991 after purchasing a company stake the previous year. Kotick orchestrated the merger with Vivendi Games in the 2000s, which led to the formation of Activision Blizzard, and made him the company’s first CEO.

Today, the company is composed of five business units: Activision Publishing; Blizzard Entertainment; King, which it acquired in 2016, Major League Gaming, and Activision Blizzard Studios.

BRO CULTURE

Report: Activision Took Years To Fire Someone Who Signed Emails '1-800-ALLCOCK'


Ethan Gach
Fri, November 19, 2021


A California lawsuit earlier this year alleged sexual harassment, discrimination, and a pervasive “frat boy culture” at Call of Duty publisher Activision Blizzard. At least in one instance, that culture included an employee signing all of his work emails as “1-800-ALLCOCK.”

That detail comes from the latest episode of The Wall Street Journal podcast which elaborates on some of its recent bombshell investigative report outlining new instances of misconduct and coverups, including by CEO Bobby Kotick.

“There was one example where an Activision employee had for years just signed his email signature 1-800-ALLCOCK,” reporter Kirsten Grind said in a transcript of the podcast. “So if you were a woman, you would get that email and that was just the normal course, right? Just guys being guys joking about it and you just sort of felt like that was what happened at Activision.”

Activision reportedly didn’t take action regarding the email signature until it received a complaint about it just this past summer, at which point it fired the employee after a month-long investigation. The company did not immediately respond to a request for comment.

The podcast episode also interviewed a former employee about her time at Sledgehammer Games, maker of the recently released Call of Duty: Vanguard. Ashley Mark, hired as a quality assurance analyst in 2016 during the production of Call of Duty: WWII, described the male-dominated workplace like this:

You’ve got people who want to...Basically are very nerdy, want to make a good game, and then you’ve got the gun-loving group because it’s Call of Duty so you’re going to attract people who love guns, and then you have got people who are really into fitness. There’s a lot of people who are into fitness at least at that time at Sledgehammer Games. So there were people who would go into groups and that you would go to the gym and they would just get pumped up. So it’s very masculine.

Mark recalled a 2017 studio anniversary party where one former Sledgehammer manager “put his arm around my female coworker almost like a choke hold” while hugging her and repeatedly saying her name. That former manager told The Wall Street Journal he didn’t remember the details of the evening in question because he was too drunk, but confirmed he was put on a two-week paid suspension before being moved to a different role.

Sledgehammer Games was also where one former female employee was reportedly raped twice, incidents that were not investigated until she sent a letter from her lawyer after she had already left the company. According to the new podcast episode, when she originally to her complaint to studio HR, a representative for the department tried to get her to down play what had happened and reframe it in a more positive light.

Until recently, most of the attention has been on allegations about past misconduct and discrimination at Blizzard. But these latest reports reinforce parts of the original California lawsuit which cited booze-filled offices and work events, and negligent HR departments, as recipes for mistreatment across the entire Activision Blizzard business.

This week, the heads of both PlayStation and Xbox spoke out about the latest revelations. Girls Who Code cut ties with the company. And some shareholders joined over 2,000 current Activision Blizzard employees in calling for Kotick to resign.

“It’s pretty clear that the only forces that can create change at Activision are its customers (whose money is the ultimate corporate goal), its investors and the employees whose talent makes Activision’s games worth buying,” Paul Reiche, former head of Activision Blizzard’s Skylanders studio, told Axios today. “If the new stories I have read are true, I can’t see how Activision can continue its success without new leadership”

Microsoft reportedly evaluating relationship with Activision amid CEO turmoil

Brett Molina, USA TODAY
Thu, November 18, 2021,

Activision Blizzard says it hired a law firm to help ensure a "respectful and inclusive" workplace.

Microsoft is reportedly evaluating its relationship with video game publisher Activision Blizzard following allegations CEO Bobby Kotick knew for years about sexual misconduct claims at the company.

Xbox head Phil Spencer sent an email to staff, according to Bloomberg, saying he is "evaluating all aspects of our relationship" with Activision Blizzard following a report from The Wall Street Journal claiming Kotick didn't inform the board of allegations of sexual misconduct at the publisher.

In a statement emailed to USA TODAY in response to the report, Spencer said he personally has strong values for a welcoming and inclusive environment for Xbox employees.

"This is not a destination but a journey that we will always be on," said Spencer. "The leadership at Xbox and Microsoft stand by our teams and support them in building a safer environment for all."

Activision told USA TODAY in an emailed statement it respects feedback from its partners and is engaging with them further.

Employees at Activision Blizzard staged a second walkout demanding Kotick be removed as CEO, NBC News reported. A Twitter account representing employees of the company shared a petition seeking Kotick's removal that has more than 1,000 signatures.



In a statement released Tuesday after the Journal report, Activision's board showed support for Kotick. "The Board remains confident that Bobby Kotick appropriately addressed workplace issues brought to his attention," it said.

Earlier this year, the state of California sued Activision Blizzard claiming the publisher fostered a sexist culture and paid women less than men despite doing more work.

The lawsuit prompted employees' initial walkout urging changes within the company's culture.

Follow Brett Molina on Twitter: @brettmolina23.

This article originally appeared on USA TODAY: Activision Blizzard: Microsoft reportedly evaluating relationship

Xbox is re-evaluating its relationship with Activision Blizzard


Kris Holt
·Contributing Writer
Thu, November 18, 2021

Phil Spencer is reportedly reassessing Xbox's relationship with Activision Blizzard following new bombshell reports about the company and CEO Bobby Kotick. Spencer, who runs Microsoft's Xbox division, reportedly told employees in an email that he's “evaluating all aspects of our relationship with Activision Blizzard and making ongoing proactive adjustments,” in the wake of an investigation by The Wall Street Journal.

In the memo, which was obtained by Bloomberg, Spencer said he and other leaders at Xbox are “disturbed and deeply troubled by the horrific events and actions” that reportedly took place at Activision Blizzard. "This type of behavior has no place in our industry,” Spencer wrote.

Kotick is said to have known about instances of sexual misconduct at the company for years without reporting them to the board. He has also been accused of mistreating women on numerous occasions.

Spencer has joined Sony Interactive Entertainment CEO Jim Ryan in expressing deep concern about the situation. In an internal memo, which also leaked earlier this week, Ryan wrote that he was "disheartened and frankly stunned to read” The Journal's report. He also criticized Activision's response to the allegations. Earlier this week, the company told Engadget that the report presented a “misleading view of Activision Blizzard and our CEO.”

More than 900 Activision Blizzard employees and contractors have now signed a petition demanding Kotick's removal. A shareholder group has also urged the board to remove Kotick and for the board's two longest-serving directors to retire by the end of the year. In addition, Polygon and Eurogamer both called for Kotick's resignation. Strongly worded statements from leaders at Microsoft and Sony, two of Activision Blizzard's most important business partners, will further crank up the pressure.

"We respect all feedback from our valued partners and are engaging with them further," an Activision Blizzard spokesperson told Engadget. "We have detailed important changes we have implemented in recent weeks, and we will continue to do so. We are committed to the work of ensuring our culture and workplace are safe, diverse, and inclusive. We know it will take time, but we will not stop until we have the best workplace for our team."

Activision Faces Internal Rifts in Bid to Blunt Uproar Over CEO



Jason Schreier
Wed, November 17, 2021

(Bloomberg) -- Some employees at Activision Blizzard Inc. said they were let down by internal meetings that were held Wednesday morning to discuss the new revelations about the company and Chief Executive Officer Bobby Kotick.

The gatherings took place on video calls across the game publisher’s three primary organizations, Activision, Blizzard and King. Executives in charge of each division took questions and shared similar talking points after the Wall Street Journal reported detailed allegations that Kotick was aware of sexual misconduct at the company years before a California lawsuit made them public this summer and failed to report alleged instances of rape to the board.

Hours after the article was published on Tuesday, more than a hundred employees staged a walkout to demand Kotick’s resignation. The board said it’s standing by Kotick, but partners and shareholders have raised questions about his handling of the crisis. Sony Group Corp.’s PlayStation chief Jim Ryan criticized Activision’s response in an email to staff Wednesday, Bloomberg reported. When asked for comment, the California State Teachers’ Retirement System, which owns more than a million shares in Activision, said in a statement that it recognizes that sexual harassment and misconduct incidents can result in “significant” risks to its portfolio holdings and that it continually monitors its holdings to address those risks.

The leaders said Kotick would be working to “regain trust” of employees throughout the company, according to partial transcripts from two of the meetings shared with Bloomberg. Activision president Rob Kostich told people in his group that Kotick wouldn’t be resigning, according to two attendees. Blizzard’s top executive, Mike Ybarra, told staff in what appeared to be pre-recorded remarks that he understood their frustrations and apologized for not being more active as a leader, according to two attendees.

Some employees of King, the makers of Candy Crush, asked whether a sudden announcement on Monday that they’d be getting bonus vacation days next week for Thanksgiving was meant to preempt the article. Activision Blizzard Chief Operating Officer Daniel Alegre denied that was the reason. In response to a question about whether Activision’s newly instituted “zero tolerance” policy on harassment, announced last month, would also apply to Kotick, Alegre said that his boss was “deeply and personally committed to doing the right things.”

Alegre also addressed the reported pay disparity between Ybarra and Jennifer Oneal, who were named co-leaders of Blizzard this summer following the lawsuit. Oneal, who resigned earlier this month, said she was paid less than Ybarra. Alegre said that Oneal was paid “differently” than Ybarra because of complications involving cash and equity and that “they were both offered the exact same compensation.”

But Oneal told Blizzard employees that she wasn’t offered compensation equal to Ybarra’s until she tendered her resignation, according to a Slack transcript reviewed by Bloomberg. Gaming website IGN earlier reported on the Slack exchange. Pay discrimination was one of the items listed in the California lawsuit.

The company also told staff that it’s banning alcohol in all offices. Many people were given the opportunity to take paid mental health days, which some staff said hadn’t mollified them. On video calls and in Slack channels across the company, calls for Kotick’s ousting continue. Many Activision Blizzard employees are even publicly demanding on their own personal Twitter feeds that the CEO be fired.

In an email to Blizzard staff on Tuesday reviewed by Bloomberg, Ybarra wrote that “if there’s a silver lining to the last few months, it’s that they’ve proven that Blizzard is full of incredible employees who are making progress every day to improve our culture, our game communities, and ourselves.” Ybarra added that “our best years are ahead of us.”

But with morale low and Kotick still in place, some employees are skeptical about that.