While Kotick's sale couldn't have come at a better time (for someone looking to sell), his massive stock dump could be cause for concern for investors. Consider that there may be a few weaknesses in Activision's current strategy, including relying on sales of music games, a vital part of the publisher's empire, which have been slowing down. Activision's focus on iterative brands may also be vulnerable to sales slumps, as EA discovered when consumers became disinterested in worn-out franchises like Medal of Honor. Certainly, Kotick's stock sale could indicate that Activision has peaked as a publisher.
Then again, chances are, it hasn't.
Update: A reader informs us that Kotick still has many "unvested holdings," and with these stock options expiring in the spring, Kotick is forced to sell his remaining vested stock "or else he just gives up those millions for free." Essentially, this sale doesn't relate to his valuation of the company's economic position.