Well, here is the update on the story for now.
http://www.gamasutra.com/view/news/27482/Analysis_Infinity_Wards_DoubleEdged_Sword.phpsummary:
Infinity Ward co-founders Jason West and Vince Zampella got fired for contract disputes
-Activision wanted IW to start work on MW3. Not next week, not tomorrow, but NOW!!!
-IW wanted to work on the New IP that they agreed on with Activision back in 2008
-Refer to the line above the last.
-JW & ZV put their foot down and refused
-Activision used that as reason to file for subordination and breach of contract since IW is the only studio that can work on new MW franchise games and Activision wants more MW NOW!!
-JW & ZV are let go.
Activision announces plans for future of Modern WarfarePublisher Activision announced today new "strategic plans" for the Call of Duty franchise, announcing a new developer for the shooter franchise and confirming the departure of key Infinity Ward staffers.
[...]
The company expects to release a new Call of Duty game from Treyarch this fall. In addition, Infinity Ward is in development on the first two downloadable map packs for Modern Warfare® 2 for release in 2010.
The company is also for the first time announcing that a new game in the Call of Duty series is expected to be released in 2011 and that Sledgehammer Games, a newly formed, wholly owned studio, is in development on a Call of Duty game that will extend the franchise into the action-adventure genre.
So to sum it all up.
IW wanted to make the New IP that Activision said they could during the contract negotiations they had back in 2008.
IW releases a record breaking MW2 and anted to start on that new IP now as planned.
Activision: (laughs)
IW says they are gonna do it anyway
Activision: (scowls)
Activision sends guards over to the studios, jams all incoming and out going signals to the building, chains and pad locked all the doors.
Jason West and Vince Zampella look around nervously as armed guards surround them inside Bobby Kotticks office.
Kottick then hits a button on his desk and says "Bring in the kit"
::About 4 hours of details missing:: But the skys darkened over Activision HQ and the sounds of thunder and lightning where being reported as a freak weather incident at the time. All security cameras in the building lost their feed and the sound of screaming could be heard from down the halls.
Jason & Vince wake up at home, unemployed and feeling hung over with a bottle in hand
Activision announces that IW will not be making the next 2 CoD games (leaving IW free to do their new IP?) and that those game will be released over the next 2 years (leaving IW free to make that new IP?).
I guess IW is now about to start work on MW3 scheduled for Fall 2012.