OFFICIAL: Bungie leaving MS, becoming second party

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It's official.


REDMOND, Wash. — Oct. 5, 2007 — Microsoft Corp. today announced a plan for Bungie Studios, the developers of the “Halo®” franchise, to embark on a path to become an independent company. Microsoft will retain an equity interest in Bungie, at the same time continuing its long-standing publishing agreement between Microsoft Game Studios and Bungie for the Microsoft-owned “Halo” intellectual property as well as other future properties developed by Bungie.

The critically acclaimed Xbox 360®-exclusive “Halo 3” achieved $300 million in global sales in its first week. Released on Tuesday, Sept. 25, “Halo 3” is the fastest-selling video game ever and already one of the most successful entertainment properties in history.

“Our collaboration with Bungie has resulted in ‘Halo’ becoming an enduring mainstream hit,” said Shane Kim, corporate vice president of Microsoft Game Studios. “While we are supporting Bungie’s desire to return to its independent roots, we will continue to invest in our ‘Halo’ entertainment property with Bungie and other partners, such as Peter Jackson, on a new interactive series set in the ‘Halo’ universe. We look forward to great success with Bungie as our long-term relationship continues to evolve through ‘Halo’-related titles and new IP created by Bungie.”

“This exciting evolution of our relationship with Microsoft will enable us to expand both creatively and organizationally in our mission to create world-class games,” said Harold Ryan, studio head for Bungie. “We will continue to develop with our primary focus on Microsoft® platforms; we greatly value our mutually prosperous relationship with our publisher, Microsoft Game Studios; and we look forward to continuing that affiliation through ‘Halo’ and beyond.”

Bungie Studios will remain in its current location in Kirkland, Wash.

About Bungie Studios

Bungie Studios was founded in 1991 with two goals: to develop games that combine brilliant technology, beautiful art, intelligent stories and deep gameplay, and then sell enough of those games to achieve its real goal of total world domination. Over the past 10 years it has produced games such as the “Marathon” trilogy and the first two “Myth” games, hailed as classics by critics and gamers around the world. Bungie’s “Halo” franchise is an international award-winning action title that has grown into a global entertainment phenomenon, selling more than 14.8 million units worldwide, logging nearly 1 billion hours of multiplayer action on Xbox LIVE®, and spawning action figures, books, a graphic novel, apparel and more. Bungie released “Halo 3” on Sept. 25, 2007 to universal critical acclaim, and first day US sales of over $170 million, making it the biggest opening day in entertainment history. More information on Bungie can be found at http://www.bungie.net.

About Microsoft Game Studios

Microsoft Game Studios is a leading worldwide publisher and developer of games for the Xbox and Xbox 360 video game systems, the Windows® operating system and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed to creating innovative and diverse games for Windows (http://www.microsoft.com/games), including such franchises as “Age of Empires®,” “Flight Simulator” and “Zoo Tycoon®”; Xbox and Xbox 360 (http://www.xbox.com), including such games as “Gears of War” and franchises such as “Halo,” “Fable®,” “Project Gotham Racing®” and “Forza Motorsport®”; and MSN® Games (http://www.games.msn.com), the official games channel for the MSN network and home to such hits as “Bejeweled” and “Hexic®

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.​


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There's a good chance it will happen. Here, I'll explain everything.

This whole thing started with this, a blog post from 8Bit Joystick who's source is a friend of a friend who works at Bungie.

8Bit Joystick
A friend of mine who has someone close to them that works at Bungie has just been dying to tell me a secret about their future. Since the NDA officially expire today the sent me and email with the details. I have full faith in this contact.

The email is as follows :

"So heres my big secret. You should google Bungie + Microsoft + separation this week.
You know that big ol BILLION dollar franchise Bungie has created for Microsoft, to show their appreciate Microsoft is letting Bungie leave. Of course Microsoft gets to keep all rights to the Halo franchise, but as today Bungie no longer part of Microsoft. Ask anyone who works there to search the global address book, they're no longer in there. Microsoft was supposed to release the press release today but if they wait till the 10/6 the impact wont effect the quarterly results. However today is the actual official date and the day the NDAs expire, however you still didn't hear this from me."

"Apparently MS just wants Bungie to make Halo for the rest of their natural days, and Bungie doesn't like how MS is constantly trying to "handle" everything they do; the way they market their games, the way they interact with their fans (basically the fact that they do appreciate their fans), and how stingie they are with the profits (comparable to the rest of the industry). So as of today they are their own independent entity. They'll probably make Halo 4 for Microsoft, however hey are also free to create new intellectual properties for whatever system they want. (Even though they prefer the xbox platform)"

"What a way to say thank you."

Then, 1UP and Kotaku asked for a PR statement on this, and then received suspicious responces.

http://www.1up.com/do/newsStory?cId=3163310

1UP
1UP first got in touch with Bungie, who pointed us in the direction of Edelman, Microsoft's (and thus Bungie's, as they are currently a Microsoft-owned studio) PR outlet. We ended up contacting several Microsoft representatives at Edelman for comment, receiving two slightly differing responses.

"To your question, there's been no such announcement. We can't comment further." -- Microsoft representative #1

"There's been no such announcement. We continue to celebrate the tremendous success of the global phenomenon that is Halo 3." -- Microsoft representative #2​

Canned PR responses differ company to company. Representative #1's "we can't comment further" is telling, considering the responses share some identical phrasing, making the official PR line within Microsoft "there's been no such announcement." When a PR company expects requests for comment from a number of outlets about the same piece of news, there is usually a canned response -- "there's been no such announcement" is Microsoft's canned response for today. "We can't comment further" suggests there actually is something more they simply can't talk about yet.

While this is all happening, there's a huge thread raging at NeoGAF, and both Luke Smith and Frank O'Connor (both Bungie employees involved with the community), who've been actively posting at GAF when this exploded, never posted in that thread (which is suspicious).

Then, TeamXbox jumps into the fray, claiming their sources told them this, which falls in line with the original rumor:

TeamXbox
By now, you must have heard the rumor of Bungie leaving Microsoft that started at 8Bit Joystick.com. Well, we can't provide further info now (we'd put our sources in trouble) but we're going to tell you that it is more complex than simply Bungie leaving Microsoft or Microsoft letting Bungie go.

There will be an official announcement this week, definitely before October 12th...

And after that, Matt Casamassina at IGN, who originally claimed there was a Halo DS and that he played it, finally shows screenshots and videos of the canned game today. It's obvious he showed it now instead of months ago (when everyone was doubting him) because of NDAs of some sort – he could've easily showed it to the world a long time ago.

And finally, GameInformer drops a bomb.

GameInformer
Rumors are floating abound that Halo masterminds Bungie will be leaving Microsoft. The rumor’s source being a reader blog from Seattlepi.com stating that in fact, as of yesterday, Bungie is no longer part of Microsoft. While the majority of Internet denizens are stating that this could never happen and that it’s not true, we’ve heard the opposite. From a source close to Bungie, Game Informer has learned this rumor has some merit. It looks like with Halo 3, Bungie really is finishing the fight.

Our source stated that Bungie is “tired of Making Halo, and didn’t want to do future Halo games.” For an unstated, but significant amount of money, Bungie shareholders bought the studio name back from Microsoft. Our source also revealed that even though Microsoft will retain the rights to Halo, Microsoft also has “the right of first refusal on future games.” This means that Microsoft has the first shot at publishing Bungie’s future titles. How this will come into play if Bungie decides they want future game X to appear on the PlayStation 3 and Wii alongside an Xbox 360 release will make things quite interesting.


We contacted Microsoft, and their boilerplate statement basically skirts the issue.

“There’s been no such announcement. We continue to celebrate the tremendous success of the global phenomenon that is Halo 3.”

After every Halo release, members of Bungie have departed to form their own development houses such as Certain Affinity and Wideload Studios. Why would Microsoft actually let go of the company who single-handedly made Xbox what it is today is the big question. And for that, Microsoft nor Bungie have revealed a true answer.

We’ll have more on this story as it breaks.

Microsoft officially shuts down FASA Studios a few weeks ago (though that was known for a while), they let Bizarre Creations go to Activision, and now Bungie could split with MS, although they'd be more like David Jaffe's new "Eat Sleep Play" studios or Insomniac Games. They probably won't become a full-fledged 3rd party developing PS3 and Wii games, but they'll be able to get away from the Halo series and develop new, different games – whether it's a new Marathon or a new IP – for the 360, PC, Mac, and DS as well.
 
Too bad all they really have is Halo, They will be the next Valve, Epic or ID software unless they can make something not a FPS......

...so its not much of a gain for the industry, just a loss for MS.
 
They don't make too many games is what I mean. Their success is from one game and them being great is an opinion. They are not even doing Halo Wars.
 
An opinion almost universally accepted. What game made by Epic, Valve, or Id have gotten less than a 8.5 (or equivalent) by any reviewer?
 
Uhhh, I still find this very hard to believe. I mean, Bungie is such a HUGE part of MSG that I just can't see them letting them go. My guess is that Microsoft will throw more money at them, let them do something else (maybe Halo-related), and keep them on board.
 
They don't make too many games is what I mean. Their success is from one game and them being great is an opinion. They are not even doing Halo Wars.
Bungie is overseeing Halo Wars.

And yes, they're huge and popular because of a single series – that doesn't mean it's a bad thing. Polyphony is popular because of Gran Turismo, but that shouldn't be a knock against them. They developed the Myth and Marathon series which were well regarded, so it's not like Halo was a fluke.

And even still, it's Bungie, creator of one of the most popular franchises out there. If MS passes on publishing dibs, other publishers would snap up their next game in seconds.
Uhhh, I still find this very hard to believe. I mean, Bungie is such a HUGE part of MSG that I just can't see them letting them go. My guess is that Microsoft will throw more money at them, let them do something else (maybe Halo-related), and keep them on board.
From what I've heard, there were internal conflicts with MGS – Bungie doesn't want to do a Halo 4, MS obviously wants them to. I'm guessing Microsoft had two choices:
  1. Microsoft keeps the Halo franchise rights and the Bungie name; the big talent that made Halo so good in the first place would leave Bungie, start up their own development studios, and develop for whoever they wanted to develop for.
  2. Microsoft lets Bungie buy itself back, but have them agree to MS having first dibs on publishing rights for any game they plan to make. Unless the game is a DS game (in which MS would pass since they wouldn't publish for the DS, and thus Bungie would go to THQ like Rare and Mistwalker), MS could essentially have all their games exclusive to the Xbox platform if they choose to do so. Bungie would be free to create any new IP it chooses to create, and not shoehorned into a Halo 4. MS retains the Halo rights.

Obviously this is still unconfirmed, but it's likely.
 
They don't make too many games is what I mean. Their success is from one game and them being great is an opinion. They are not even doing Halo Wars.

Quality over quantity. ;)

The only games i've played from either of those guys is Doom 3 from ID and that was a great game. Halo's franchise is great. I've never played HL2 but I watched as a friend played it and just watching someone played it I thought it was damn awesome.
 
It's official.


REDMOND, Wash. — Oct. 5, 2007 — Microsoft Corp. today announced a plan for Bungie Studios, the developers of the “Halo®” franchise, to embark on a path to become an independent company. Microsoft will retain an equity interest in Bungie, at the same time continuing its long-standing publishing agreement between Microsoft Game Studios and Bungie for the Microsoft-owned “Halo” intellectual property as well as other future properties developed by Bungie.

The critically acclaimed Xbox 360®-exclusive “Halo 3” achieved $300 million in global sales in its first week. Released on Tuesday, Sept. 25, “Halo 3” is the fastest-selling video game ever and already one of the most successful entertainment properties in history.

“Our collaboration with Bungie has resulted in ‘Halo’ becoming an enduring mainstream hit,” said Shane Kim, corporate vice president of Microsoft Game Studios. “While we are supporting Bungie’s desire to return to its independent roots, we will continue to invest in our ‘Halo’ entertainment property with Bungie and other partners, such as Peter Jackson, on a new interactive series set in the ‘Halo’ universe. We look forward to great success with Bungie as our long-term relationship continues to evolve through ‘Halo’-related titles and new IP created by Bungie.”

“This exciting evolution of our relationship with Microsoft will enable us to expand both creatively and organizationally in our mission to create world-class games,” said Harold Ryan, studio head for Bungie. “We will continue to develop with our primary focus on Microsoft® platforms; we greatly value our mutually prosperous relationship with our publisher, Microsoft Game Studios; and we look forward to continuing that affiliation through ‘Halo’ and beyond.”

Bungie Studios will remain in its current location in Kirkland, Wash.

About Bungie Studios

Bungie Studios was founded in 1991 with two goals: to develop games that combine brilliant technology, beautiful art, intelligent stories and deep gameplay, and then sell enough of those games to achieve its real goal of total world domination. Over the past 10 years it has produced games such as the “Marathon” trilogy and the first two “Myth” games, hailed as classics by critics and gamers around the world. Bungie’s “Halo” franchise is an international award-winning action title that has grown into a global entertainment phenomenon, selling more than 14.8 million units worldwide, logging nearly 1 billion hours of multiplayer action on Xbox LIVE®, and spawning action figures, books, a graphic novel, apparel and more. Bungie released “Halo 3” on Sept. 25, 2007 to universal critical acclaim, and first day US sales of over $170 million, making it the biggest opening day in entertainment history. More information on Bungie can be found at http://www.bungie.net.

About Microsoft Game Studios

Microsoft Game Studios is a leading worldwide publisher and developer of games for the Xbox and Xbox 360 video game systems, the Windows® operating system and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed to creating innovative and diverse games for Windows (http://www.microsoft.com/games), including such franchises as “Age of Empires®,” “Flight Simulator” and “Zoo Tycoon®”; Xbox and Xbox 360 (http://www.xbox.com), including such games as “Gears of War” and franchises such as “Halo,” “Fable®,” “Project Gotham Racing®” and “Forza Motorsport®”; and MSN® Games (http://www.games.msn.com), the official games channel for the MSN network and home to such hits as “Bejeweled” and “Hexic®

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.​


So basically, Bungie technically leaving Microsoft, but it will be in a situation like Mistwalker where it's technically independent but still heavily influenced by Microsoft.

And notice how they said "... continues to evolve through ‘Halo’-related titles and new IP created by Bungie." Halo 4 + Halo DS confirmed? :P
 
Well, it doesn't sound too bad then. They're still there, kinda, just not as much as they used to be... I can't fault Bungie for trying to branch out a bit though and flex their muscles. Halo is still a HUGE property for them to use with Microsoft, and it would have been a shame to see that relationship fracture.
 
They have more than enough money to pay out for exclusives rather than making great first party titles(after Halo there is??).
 
They have more than enough money to pay out for exclusives rather than making great first party titles(after Halo there is??).

Well, they have Banjo-Kazooie 3, Fable 2, Halo Wars, and that Peter Jackson Halo project announced thus far. They probably have Forza 3 under development by Turn 10, and I'm guessing Rare is probably working on two or so unannounced games as well, but other than that all their exclusives are from publishing third party games (like from BioWare, Team Ninja, and Remedy), or just third party exclusives that MS most likely passed money under the table for like BioShock and Ace Combat 6.

I do agree with you that they're just going to sign on games from third parties after the success of Gears of War and Rare's talent leaving the company.
 

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