Activision has confirmed that Kathy Vrabeck, president of the Activision Publishing division of Activision, Inc. has resigned from the company and its subsidiaries. Vrabeck, one of the most successful and highest paid women in the game publishing industry, joined Activision over six years ago and has been a key executive for the company.

A report on TheStreet.com speculates that Vrabeck is leaving after being passed over for a promotion in June when the company announced it had hired Michael Griffith, a former Proctor & Gamble executive, to replace Activision Publishing CEO Ron Doornink. It is not clear if this is the actual reason, and the industry will have to wait for Vrabeck to announce her next plans. The company reported that she will continue to “remain an employee of Activision through April 1, 2006”. Analysts see this as a likely concession to enforce a non-compete agreement in this time of heightened pre-next-gen competition.

Gamespot, quoting SEC documents, reports that Vrabeck “earned a base salary of $500,000, and during fiscal year 2005 she garnered a $423,750 bonus”. Wedbush Morgan senior analyst Michael Pachter, reacting to the news in a memo to investors, says he was “slightly surprised and disappointed” by Vrabeck’s announcement but added, “We are not concerned with the management team’s ability, and believe that Activision has sufficient bench strength to match its leading stable of marquee games and development talent.”.