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Update 4:45pm: Just got a press release from Activision that had the following tidbits that we felt should be passed along.

It should be noted that this is a major shake up for the company and leads to even more insight as to what is REALLY going on with this story. Our podcast below gives some of our thoughts and notes before the press release came out and we feel it further reinforces the things that we said during it.

Take a look at the full story here and then check out the podcast and let us know your thoughts.

Activision Publishing, Inc. (Nasdaq: ATVI) today announced new strategic plans for the Call of Duty(R) franchise, one of the best-selling video game franchises of all time.

The plans include the formation of a dedicated business unit that will bring together its various new brand initiatives with focused, dedicated resources around the world.

The company intends to expand the Call of Duty brand with the same focus seen in its Blizzard(R) Entertainment business unit. This will include a focus on high-margin digital online content and further the brand as the leading action entertainment franchise in new geographies, new genres and with new digital business models.

“2010 will be another important year for the Call of Duty franchise,” stated Mike Griffith, President and CEO of Activision Publishing. “In addition to continued catalog sales, new downloadable content from Infinity Ward and a new Call of Duty release, we are excited about the opportunity to bring the franchise to new geographies, genres and players.”

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(R) 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.

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.

It should also be interesting to note that as of this moment Activision’s share price is dropping after this release came out.

Update 4:25pm: We have recorded a special podcast on this very issue. Find it in iTunes or by listening below.

Update 2:35am: This story is now CONFIRMED. From SEC report

In November 2009, the Company released Call of Duty: Modern Warfare 2, a game developed by one of the Company’s wholly-owned studios, Infinity Ward. As noted above, Modern Warfare 2 was the best selling console title in the U.S. and Europe in 2009. Consistent with past practice, the Company intends to release a Call of Duty game in 2010 developed by another wholly-owned studio. The Company is concluding an internal human resources inquiry into breaches of contract and insubordination by two senior employees at Infinity Ward. This matter is expected to involve the departure of key personnel and litigation. At present, the Company does not expect this matter to have a material impact on the Company.

Update 2:30am: I have received another text message from a friend who works at Activision and has proven a reliable source in the past who has confirmed that Jason is no longer with Infinity Ward. No word on anyone else at the moment. She could be fed incorrect information but at this point I believe her.

I’ve been following the Security Appears Unannounced At Infinity Ward, Studio Heads Missing, Staff “Freaked Out” over on G4TV’s website.

Details have been sparse for the most part and because it might just be a rumor I’ve held off on reporting anything.

The more I’ve thought about it over the past two hours the more I began to believe it. Patrick Klepek is someone I trust though. Back in the day he was at 1UP, he has done some PAX panels and he has no reason to lie. His source likely has no reason to lie as well.

I still decided I would just wait it out before I posted anything about this story though. Then a friend who works at Blizzard Entertainment (aka Activision) sent me a cryptic text message in which she asked if I had heard the news. I played dumb that I had not heard the news and she simply said check out Patrick’s Twitter. I asked if she knew more and she hasn’t replied back.

That text message brought me to thinking about the situation again. A few minutes later I can now 100% confirm and guarantee that Jason West’s LinkedIn profile now shows him no longer with Infinity Ward.

Now it isn’t hard to show that as a past job on LinkedIn. It takes only a few clicks but even if this was a publicity stunt removing your job on LinkedIn seems a bit far. ESPECIALLY for someone who doesn’t have a lot of public followers and has guarded his account.

I’ve been seeing a lot of speculation the last few hours that it isn’t real, that it is a publicity stunt, or just wild claims. I won’t be posting these sort of things.

I highly suggest you check out the original article over on G4 by clicking here and I’ll update this post if I personally find anything new out.