Man, the more I read about this Activision story, the worse it looks for Activision (which I consider to be a good thing). Just parsing the story here, what I gather is that it looks like Activision (obviously) wanted to make a Modern Warfare 3, but had a contract with the 2 head people at Infinity Ward that gave them veto power over anyone making a 3rd game through 2011 and had huge bonuses coming. The Infinity Ward folk wanted to make a New IP as well, which Activision publicly disdains. So Activision allegedly goes on a witch hunt to find a way to void their contracts and fire them so they didn't have to pay them their money and could proceed with milking Modern Warfare. Diabolical, but it's what I expect from Activision.
Now, I realize that there's a lot that needs to be proved in the Court of Law here but does anyone really believe Activision wasn't actively trying to engage in shady business practices here, especially with their shady history (Brutal Legend, anyone?)?