Activision has denied claims it stores passwords for its Call of Duty: Elite service in plain text, but has admitted to e-mailing them in this form when users attempt to recover them.
"All Call of Duty Elite personal data, including passwords are saved and stored using encryption," Activision said to Eurogamer.
Sending out unencrypted passwords in plain text is not recommended by IT security experts.
"Call of Duty Elite does not store any sensitive data in plain text. Currently, the only time passwords are sent in plain text is upon request from the registrant and only to the registered email address."
Activision has pledged to change its password recovery system to not include plain text passwords.
"We are in the process of altering our password recovery procedure so that passwords are no longer delivered in plain text," said the publisher. "That change will be implemented as soon as testing is completed."
Over one million people have subscribed to Call of Duty: Elite's premium service, which costs £34.99.