That was actually a
physical card game, it got hyped up by the creators at
NYCC 08 and I think it had another couple appearances. It was supposed to launch fall of that same year, but then just never did. Funny thing, though it's hard to get good quality footage, it looks almost like a precursor to the modern clash royale style formula, at least to me, except instead of spells you had guns.
But yeah it got shit on really hard whenever it showed up cause it looked stupid and like a gigantic ripoff (had to buy a "squad" set to play the game, then had to buy boosters to get guns). And there was also low faith in it anyway from being a call of duty card game. Upper deck (the production company behind it) was also notoriously litigious and dealing with bullshit lawsuits all the time, as they were a primary producer of sports "goods" so athletes would regularly ream them, and they and Topps (sports cards company) were regularly duking it out. That said, most of Upper Deck's business was not necessarily cards (though they did some) but a lot of like, shitty little die-cast figurines and stuff in the early and mid 2000s. They probably fucked up budgeting somewhere and had to cull some lower hype product launches. "Call of duty, the card game, in real time" doesn't sound like a tough cut.