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On March 1, 2010, West and Zampella were released by Activision for 'insubordination', forfeiting the bonuses they had negotiated. Events came to a head in February 2010 when Activision hired a lawfirm to investigate Infinity Ward. This in turn led to West and Zampella look to means to make Infinity Ward a studio outside of Activision's control. ДЇollowing the execution of the contract in 2008, Activision began seeking ways to find reason to fire West and Zampella to trigger the new clause. Activision agreed, but added a clause to the contract that should they be fired, the rights to Call of Duty would fall back to Activision. They promised to deliver Call of Duty: Modern Warfare 2 in 2009, but in exchange asked for extremely large bonuses and creative control of the Call of Duty series.

2010 employee firings and departures ДЇollowing the critical and financially successful release of Call of Duty 4: Modern Warfare in 2007, Jason West (president, co-CCO, and CTO) and Vince Zampella (CEO) began contract negotiations with Activision. At the time of Modern Warfare 's release, Infinity Ward had more than 100 employees. Treyarch released the next sequel Call of Duty 3 while Infinity Ward itself developed Call of Duty 4: Modern Warfare, which instead of taking place during World War II, was set in a contemporary period with a fictional conflict between superpowers. At this point, Activision brought in Treyarch, one of their internal studios, to help develop additional Call of Duty games, with Infinity Ward spending the time and effort to improve the game's engine for one game, and Treyarch using the updated engine to create a new title. Call of Duty 2 was a major success, having an 85% attach rate to new Xbox 360 console sales, and selling 1.4 million units its first year. Much of the focus of Infinity Ward's development was improving its game engine to include realistic special effects, such as smoke grenades to hinder sight, or bullets piercing through weak materials. Collier said the request would help them lose the stigma of being only a personal computer developer, and so to make sure the console version was on parity, they tripled their staff to about 75 employees. Infinity Ward agreed to prepare Call of Duty 2 for release in the last quarter of 2005. Shortly after this release, Microsoft contacted Activision to seek a Call of Duty title as a launch title for the upcoming Xbox 360 console. Activision allowed Infinity Ward a great deal of freedom in how it developed its titles.

During this period, the studio was about 25 employees including many who followed Collier, West, and Zampella from 2015.

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Initially, Activision provided Infinity Ward US$1.5 million for 30% stake in the company to start development on the first game Call of Duty, acquiring full ownership after the title was successfully launched in 2003. Dissatisfied with the current contract they had under EA, Collier, West, and Zampella engaged with Activision to help establish Infinity Ward, which became one of the primary studios within Activision for the competing Call of Duty series. The studio was formed by several members of 2015 Games, LLC., the studio that developed the successful Medal of Honor: Allied Assault for Electronic Arts (EA) in 2002. Infinity Ward was founded as an Activision division by Grant Collier, Jason West, and Vince Zampella in 2002.

1.3 Neversoft merger and further expansion.

1.1 2010 employee firings and departures.

On May 3, 2014, Neversoft was merged into Infinity Ward. In 2010, West and Zampella were fired by Activision for 'breaches of contract and insubordination', they soon founded a game studio called Respawn Entertainment.

Infinity Ward went on to make Call of Duty 2, Call of Duty 4: Modern Warfare, Call of Duty: Modern Warfare 2, Call of Duty: Modern Warfare 3, Call of Duty: Ghosts, Call of Duty: Infinite Warfare and the Modern Warfare reboot.Д¬o-founder Collier left the company in early 2009 to join parent company Activision. The day after the game was released, Activision bought the rest of Infinity Ward, signing employees to long-term contracts.

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The studio's first game, World War II shooter Call of Duty, was released on the PC in 2003. Activision helped fund Infinity Ward in its early days, buying up 30 percent of the company.

All of the 22 original team members of Infinity Ward came from the team that had worked on Medal of Honor: Allied Assault while at 2015, Inc. Vince Zampella, Grant Collier, and Jason West established Infinity Ward in 2002 after working at 2015, Inc. They developed the video game Call of Duty, along with seven other installments in the Call of Duty series.