A source close to Infinity Ward has told Kotaku that the developer as we know it is "dead" and "will continue to crumble".
Speaking with the site anonymously, the source claims that the recent wave of walkouts along with the formation of Respawn studios by Jason West and Vince Zampella is scaring the shit out of Activision.
"They're scared shitless," revealed the source. "They never saw this coming. They can't believe what's going on. At first they gave us some bullshit about moving up payments of all the money they owe us to sooner increments.
"That was when [designer] Todd [Alderman] and [engineer] Frank [Gigliotti] left. But with the announcement of Respawn and all the people leaving, they just got there heads in their hands."
"They fired the two most amazing leaders we've ever seen, and then shafted us all out of a lot of money that was promised to us...there is nothing they can do to gain our trust or respect. And I'm pretty sure they know it now.
A dozen IW employees have already left Activison, and the source says that numbers at the under-100-person operation could drop more.
To counter this, Activision has pulled folks from other studios to fill the vacant positions in hopes to start moving on Modern Warfare 3.
That won't cut the mustard, according to the source.
"IW as you know it is dead...and it will continue to crumble," it was suggested. "There are a lot more veterans who are definitely going to leave."
For a list of the employees who have left IW since the whole debacle started, click here.