Rumour control: Microsoft to sell off Bungie (Halo developers)?

[Asher]

http://biz.yahoo.com/prnews/071005/aqf020a.html?.v=2

Microsoft and Bungie Studios to Evolve Relationship
Friday October 5, 11:01 am ET
Companies to forge new long-term relationship.

REDMOND, Wash., Oct. 5 /PRNewswire-FirstCall/ -- 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.

[snoopy369]

Hmm... sounds like some Bungie folks wanted to leave and MS found a way to let them leave while still being Bungie (as opposed to some of the folks leaving and forming a new company, Brian Reynolds style) while retaining the rights that MS cares about (Halo). Win-wint situation then ... especially if it makes it a bit easier for MS to do Halo things without using Bungie (not that they couldn't before wholly owning Bungie, but sometimes the politics of that sort of thing can matter as much as the actual facts).

[Asher]

Originally posted by snoopy369
Hmm... sounds like some Bungie folks wanted to leave and MS found a way to let them leave while still being Bungie (as opposed to some of the folks leaving and forming a new company, Brian Reynolds style) while retaining the rights that MS cares about (Halo). Win-wint situation then ... especially if it makes it a bit easier for MS to do Halo things without using Bungie (not that they couldn't before wholly owning Bungie, but sometimes the politics of that sort of thing can matter as much as the actual facts).

More importantly, can you imagine the funds Bungie (and MS) can raise by doing an IPO when they announce Halo 4?

[lord of the mark]

Originally posted by Kuciwalker


Those are all meaningless since Asher's assertion (the Apple gaming market is miniscule with relation to the PC gaming market) is obviously true.

I have no doubt it is, Im just not sure if IG is what is driving that.

The total PC gaming market being far in excess of the discrete video card install base.

[Asher]

What? People with integrated graphics are so numerous to make the market "far in excess" of those with capable video cards?

[Agathon]

Everyone celebrate.

Bungie is free!!!!!!

What does it say when your best game studio can't stand you?

[Asher]

If they can't stand them, it's quite stupid to sign an agreement tying yourself to them like they did.

I don't know if you noticed, and I'm betting you probably didn't -- MS is getting rid of first party game development studios. FASA (Shadowrun, Mechwarrior, etc) and Bizarre Creations (Geometry Wars, PGR) also were severed from MS in the last month.

To me this indicates a higher level strategy at MS, rather than your puerile theory of hatred of the company that made them richer than they could possibly be otherwise.

Welcome to the world of business, Agathon. It's considerably more complex than the world of filosofical academics, which are apparently governed by petty conflicts rather than logic and reason.

[lord of the mark]

Originally posted by Asher
What? People with integrated graphics are so numerous to make the market "far in excess" of those with capable video cards?

considering how many budget PCs get sold to the great unwashed masses, Id guess yes, but I dont have data.

[Asher]

Doesn't mean those make up the market for PC games, given by not including a card required for those games they are not PC gamers.

[lord of the mark]

Originally posted by Asher
Doesn't mean those make up the market for PC games, given by not including a card required for those games they are not PC gamers.

The biggest selling PC games are the Sims and WOW, so if they can run those Id have to think theyre PC gamers. I mean if you want to define "true" PC gamers to mean those who can run current FPS's or Oblivion or Bioshock, thats something else. Just like if you decided that someone who likes Mario and Cooking Mama isnt really a console gamer.

[Asher]

I don't know of any integrated graphics card that can run Sims 2 or WOW at any reasonable setting at a reasonable framerate.

[Wiglaf]

I think WoW can run on integrated cards. I'm not sure though.

Originally posted by Asher
If they can't stand them, it's quite stupid to sign an agreement tying yourself to them like they did.

I don't know if you noticed, and I'm betting you probably didn't -- MS is getting rid of first party game development studios. FASA (Shadowrun, Mechwarrior, etc) and Bizarre Creations (Geometry Wars, PGR) also were severed from MS in the last month.

To me this indicates a higher level strategy at MS, rather than your puerile theory of hatred of the company that made them richer than they could possibly be otherwise.

Welcome to the world of business, Agathon. It's considerably more complex than the world of filosofical academics, which are apparently governed by petty conflicts rather than logic and reason.

FASA and Bizarre Creations I"m guessing are not even in the same ballpark as Bungie in terms of profitability.

[Asher]

Bizarre Creations regularly turned out million+ sellers. FASA, not so much.

In any case, I think it's clear MS is choosing to go the 2nd/3rd party route instead of having 1st party game developers. They probably saw how very profitable that can be from Gears of War -- get a different company to make the game, pay for an exclusive contract...less overhead, still good profits.

[Agathon]

I love how Asher just makes **** up. And you can always tell when he's losing, because he has to bring his ignorant, and uninformed opinion on philosophy into it to make himself feel better, even though it has absolutely nothing to do with the topic at hand. So you pretty much know from that when he's got nothing.

This "deal" is like Jonathan Ive leaving Apple. To lose your premier developer for your struggling console is a major loss. One can only imagine the fapping from some ends if Sony lost the MGS franchise. This is worse. Bungie must have been extremely unhappy to have initiated this split.

And the pathetic attempts of unbalanced fanboys to pretend otherwise is just amusing. I think my theory is the accurate one, especially since it was supported by leaks from the same sources which were the origin of rumours of the split, which many denied, but was accurate. I quote:

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, and how stingy they are with the profits,

Bungie wanted out because Microsoft was strangling them creatively and making them release unimaginative crud, like Halo 3, which is a good game, but essentially the same as the last two.

Looks like M$ made it pretty difficult for Bungie to get away completely. Poor guys are still manacled to Ballmer's sweaty mass, but at least it's not total control.

[Wiglaf]

Originally posted by Asher
Bizarre Creations regularly turned out million+ sellers. FASA, not so much.

In any case, I think it's clear MS is choosing to go the 2nd/3rd party route instead of having 1st party game developers. They probably saw how very profitable that can be from Gears of War -- get a different company to make the game, pay for an exclusive contract...less overhead, still good profits.

I would think owning the studio that makes you massively successful games would be better than signing an "exclusive deal" with an independent developer.