Duty Calls

In October 2021, Activision Blizzard CEO Bobby Kotick announced a series of corporate reforms aimed at addressing a major sexual harassment scandal and improving the company’s internal culture. The primary measure involved Kotick waiving his salary, bonuses, and equity awards until specific diversity targets are met, effectively reducing his compensation to the California minimum wage of $62,500. These initiatives were introduced in response to pressure from the ABK Worker Alliance, which successfully lobbied for the elimination of forced arbitration clauses in employment contracts—a practice that historically favored employers, with workers winning only 1.9% of such cases in the United States.

The company’s broader reform strategy includes a zero-tolerance policy for harassment, resulting in immediate termination for violators, and a commitment to increased pay transparency. Furthermore, Activision Blizzard pledged $250 million toward diversity initiatives, with a goal to increase the representation of women and non-binary employees by 50%. Currently, these groups constitute 23% of the workforce, a figure that includes the more diverse staff at the subsidiary King. While these commitments represent a significant shift in corporate policy, skepticism remains regarding the sincerity of leadership given the company’s history of executive compensation and labor disputes.

The broader industry landscape during this period reflected significant consolidation and shifting market dynamics. Notable developments included Facebook’s rebranding to Meta and the retirement of the Oculus hardware brand, the commercial success of Ubisoft’s Assassin’s Creed Valhalla, and Sony’s report of 13.4 million PlayStation 5 units sold globally. Additionally, the industry saw continued activity in mergers and acquisitions, such as Krafton’s purchase of the studio Unknown Worlds.