The Call of Duty franchise has hit a major speed bump. Black Ops 7, which launched in November 2025, is underperforming so badly that Activision is reportedly considering drastic measures including studio mergers and a complete rethink of how the game makes money. After two decades of dominating sales charts, the cracks are finally showing.
The Numbers Tell a Brutal Story
Black Ops 7’s launch has been nothing short of disastrous by Call of Duty standards. According to data from Alinea Analytics, the game sold just 401,000 copies on Steam in its first 26 days, compared to Black Ops 6’s 2.3 million copies during the same period in 2024. That’s a staggering 82% drop in PC sales alone. The situation isn’t much better across other platforms, with European launch week sales down 63% compared to Battlefield 6 and over 60% compared to last year’s Black Ops 6.
Player engagement has collapsed too. Daily active users dropped to 18 million in November 2025, down from 36 million the previous December. Steam concurrent player counts have fallen to between 50,000 and 100,000, a far cry from the 300,000 to 500,000 players previous entries maintained. Video Game Insights called it “not a normal launch-cycle fluctuation” but rather “a significant departure from historical performance.”
Why Black Ops 7 Flopped
Several factors contributed to this perfect storm. Battlefield 6 launched a month earlier in October 2025 and absolutely crushed it, securing the biggest opening weekend in Battlefield franchise history with over 7 million copies sold in three days. The competitive shooter market got even more crowded when Arc Raiders entered the scene, further splitting the player base.
But the real problem might be franchise fatigue. Annual Call of Duty releases have been the norm for nearly two decades, and players are growing tired of the formula. User reviews for Black Ops 7 have been extremely negative, with many criticizing the game for feeling rushed and uninspired. The campaign in particular drew comparisons to Modern Warfare III, which was itself criticized for feeling like overpriced DLC rather than a full game.
Studio Mergers on the Table
According to insider reports, Microsoft has told Activision leadership that nothing is off the table when it comes to fixing Call of Duty’s problems. This includes potentially merging some of the three main development studios: Treyarch, Infinity Ward, and Sledgehammer Games. The goal would be to create a “super-studio” that could deliver higher quality games, possibly by moving away from the annual release cycle that has defined the franchise.
This wouldn’t be Activision’s first studio merger. Back in 2014, Infinity Ward merged with Neversoft to create a larger development team after Infinity Ward lost half its staff following internal disputes. The idea behind multiple studios was to give each team more development time while maintaining annual releases. But if Black Ops 7’s performance is any indication, that strategy isn’t working anymore.
Monetization Getting a Complete Overhaul
Microsoft is also pushing for a complete rethink of Call of Duty’s monetization model. The current system relies heavily on battle passes, cosmetic bundles, and premium event passes. Black Ops 6 introduced premium event passes that locked limited-time game modes behind paywalls, which generated significant backlash from the community. Players were essentially paying $80 for the base game, then paying again for battle passes, then paying a third time to access temporary content that disappeared after a few weeks.
The new monetization approach remains unclear, but Microsoft reportedly wants to see “a smoother revenue stream and a reduced expenditure pattern.” Call of Duty development budgets have ballooned to astronomical levels, and the current model of annual releases with aggressive microtransactions isn’t sustainable if sales continue declining. Some speculate this could mean fewer full-priced releases supplemented by expansions, similar to how Modern Warfare III was originally planned as an expansion before being repackaged as a standalone game.
What Happens Next
Despite the doom and gloom, Black Ops 7 isn’t a complete disaster. It still topped European sales charts during its launch week and will likely end up as one of the better-selling games of 2025. Microsoft also announced that Call of Duty remained 2025’s top franchise on Game Pass, suggesting the Game Pass inclusion might be offsetting some of the decline in standalone sales.
But by Activision’s sky-high standards, Black Ops 7 is underperforming significantly. The franchise has been the backbone of Activision’s revenue for two decades, consistently generating over $2 billion annually. Any deviation from that trajectory sends shockwaves through the company and its shareholders. Activision even issued a public statement acknowledging that Black Ops 7 fell short of expectations and promising to do better, a rare admission from a publisher that typically stays quiet about underperformance.
The next few months will be critical. Season 1 content drops and free giveaways show Activision is trying everything to boost player numbers. But if the trend continues, we might see the most significant structural changes to Call of Duty development in franchise history.
Frequently Asked Questions
How bad are Black Ops 7 sales compared to previous games?
Black Ops 7 sold 401,000 copies on Steam in its first 26 days, compared to Black Ops 6’s 2.3 million copies during the same period. European sales were down over 60% year-over-year, and daily active users dropped from 36 million to 18 million.
Is Activision really considering merging Call of Duty studios?
According to insider reports, Microsoft has told Activision that studio mergers are not off the table as they look for ways to improve Call of Duty’s performance. This would potentially combine Treyarch, Infinity Ward, and Sledgehammer Games into larger teams.
Why did Black Ops 7 perform so poorly?
Multiple factors contributed including fierce competition from Battlefield 6 and Arc Raiders, franchise fatigue from annual releases, negative user reviews criticizing the game’s quality, and aggressive monetization that alienated players.
What monetization changes is Activision considering?
Microsoft wants to see a complete rethink of Call of Duty’s monetization model, moving toward a smoother revenue stream with reduced expenditure. This could mean fewer annual releases supplemented by expansions and changes to the battle pass system.
Will Call of Duty stop doing annual releases?
While nothing has been officially announced, the poor performance of Black Ops 7 has put everything on the table, including potentially moving away from the annual release cycle that has defined the franchise for two decades.
Is Black Ops 7 a complete failure?
Not entirely. It still topped European sales charts at launch and was the top franchise on Game Pass in 2025. However, by Call of Duty’s historically high standards, it significantly underperformed expectations and triggered internal discussions about major structural changes.
How is Game Pass affecting Black Ops 7 sales?
Black Ops 7 was available day one on PC Game Pass, which likely cannibalized some standalone sales. Microsoft claims Call of Duty was the top franchise on Game Pass in 2025, suggesting the Game Pass strategy might be offsetting declining retail sales to some degree.
Final Thoughts
Black Ops 7’s struggles represent a turning point for Call of Duty. For years, the franchise seemed untouchable, consistently dominating sales charts regardless of quality or competition. But player patience has limits, and annual releases with aggressive monetization have finally caught up with Activision. Whether studio mergers and monetization overhauls will fix these fundamental problems remains to be seen. One thing is clear though: the Call of Duty machine that’s been running smoothly for 20 years is sputtering, and major changes are coming whether Activision wants them or not.