@OP: the district judge dismissed the countersuit, issued a summary judgement in Activision's favor, and moved the trademark dispute back to USPTO. Specifically, the ruling is that Activision is, as a matter of law, not infringing on Warzone's purported trademark to the word "warzone," but the court will not decide the trademark registration (both want to register the mark). This was mainly based on case law Rogers v. Grimaldi.
Just to clarify: After months of heated letters sparked by the trademark registration attempts, Activision was suing for a declaration of NON-infringement (i.e., have the court determine they are definitely not infringing Warzone's purported trademark). Warzone countersued Activision for trademark infringement, asking the court to rule that Activision must either stop using the word "warzone" or pay them to do so. Both were also asking the court to rule in their favor on the trademark registration. The judge ruled that Warzone doesn't have a case on their infringement claim and granted Activision their non-infringement.
Warzone appealed the verdict. The appeal is currently in the early stages.