I wanted to address a lot of things in the comments of the latest article about it and I thought it was easier to do so in a blog.
First off, I wasn't offended by it, but I was bothered by it. To me it showed a complete disregard and disrespect to a certain demographic. Regardless if they thought about the ad or not, it shows that they didn't care about the people who it would bother or offend.
I know people complain a lot about stupid shit and ads, but I honestly think this was a bit much. There was a joke there, but it was poorly done and only comes off that it was done that way just to get the 'publicity' it's getting. They used a word that is a derogatory word towards a group of people, regardless of how some people use it, in the US it's commonly used as a derogatory term towards homosexuals. When people generally use the word, it's used as an insult no matter what meaning you feel like giving it on any given day.
If there wasn't anything wrong with the video, they wouldn't of pulled it. They're still going to make the money they make off the game regardless. It boggles my mind in a sense as well considering how activision has been lately anyway. They haven't actually shown that they generally give a shit about the people who buy their games.
I don't think anyone is being a 'baby' about it or being too 'PC' about the situation at all. Like I said, them pulling the ad shows how wrong they knew they were. People don't use the word as a term of endearment and personally I think the other definition such as it meaning 'stupid' is just a cop out, because the word stupid is there for you to use already, what made people adapt to using 'fag' and 'gay' as stupid?