Illustration of Bobby Kotick alleging a lawsuit benefited Embracer over Activision acquisition by Microsoft.
Illustration of Bobby Kotick alleging a lawsuit benefited Embracer over Activision acquisition by Microsoft.
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Bobby Kotick claims lawsuit aided Embracer over Activision

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Former Activision Blizzard CEO Bobby Kotick has alleged that a 2022 lawsuit against Microsoft's $67.8 billion acquisition of the company was filed to benefit competitor Embracer Group.

Kotick made the claim in a December response to a suit brought by Swedish pension fund Sjunde AP-Fonden in Delaware's Court of Chancery. The fund alleged the sale was rushed to avoid sexual misconduct charges against Kotick. Kotick countered that the action was meant to help Embracer expand in California at Activision's expense, making talent recruitment and mergers harder for the company.

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Recent X posts from May 23, 2026, report Kotick's court filing claims that the 2022 AP7 lawsuit against the Microsoft-Activision deal secretly aided Embracer's California expansion, with Embracer denying any involvement and calling the accusations baseless. Gaming accounts share detailed quotes and context neutrally, while some frame it as explosive allegations; high-engagement posts focus on the denial and competitive motives without strong opinions.

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News illustration showing the impact of Xbox layoffs with employees in an office packing boxes.
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Xbox announces 3200 layoffs in major restructuring

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Microsoft cut 3200 jobs at Xbox on July 6 as part of the largest restructuring in the division's history. Half the reductions took effect immediately, with the rest scheduled through June 2027. Four studios are leaving the company through spin-offs or sales.

Microsoft has agreed to pay $250 million to resolve a lawsuit filed by a Swedish pension fund over the 2022 acquisition of Activision Blizzard. The settlement ends claims that the $69 billion deal undervalued the company and was rushed amid prior scandals.

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Xbox CEO Asha Sharma and Xbox Game Studios Head Matt Booty emailed employees on June 10 with a blunt message that current operations cannot continue. The note outlined five harsh realities facing the division, including low profits and rising costs. Bloomberg separately reported that major layoffs are planned for next month.

Mobigame plans to challenge a new trademark claim from Edge Games CEO Tim Langdell over the word Edge. The mobile studio aims to keep the dispute public and document the case fully.

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Shawn Layden, the former head of Sony Interactive Entertainment America, has publicly commented on recent moves by Xbox. In LinkedIn posts, he described the changes as reflecting a misunderstanding of the industry.

Microsoft is reportedly considering the closure of Arkane Studios along with four other studios as part of a broad reset of its Xbox division. The changes could also result in the cancellation of the Marvel's Blade game.

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Former Nintendo of America president Reggie Fils-Aimé described recent mass layoffs at gaming companies as a 'red flag' for senior developers considering job offers. Speaking at NYU, he urged caution with firms that have cut jobs in the past four to six years. Fils-Aimé suggested such actions indicate a willingness to repeat them.

 

 

 

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