Microsoft and Bungie Studios to Evolve Relationship

"REDMOND, Wash. — 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’s 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."

 Source - http://www.xbox.com/en-US/community/news/2007/1005-bungie.htm

Also Here's the Bungie Weekly Update

 - http://www.bungie.net/News/content.aspx?type=topnews&cid=12834 

Nice. I hope Bungie has ideas for a new IP. I'd like to see what else they can pump out.

So Microsoft Game Studios will continue to publish Halo and future properties developed by Bungie?

That doesn't sound bad at all.
Or am I missing something?

"We will continue to develop with our primary focus on Microsoft’s 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."

Halo DS?

Good for them. As long as they keep making games they can have all the freedom they want or need.

I think is a similar to Bioware or even Epic wheren MS basically just publishes the franchise but they can do whatever they want in terms of other IP's etc. 

"Evolve Relationship",
LOL.

wow sounds like some great things can be coming out of this for 360 owners, still halo series being made by them, but new IP!

Awesome. Wonder what sort of influence MS will have over their direction, if they still have equity in them?

Any chance of them developing for other consoles? You wouldn't think the PS3??

Yeah...that "primary focus" part entails that games from Bungie could conceivably appear on any other system......just probably not Halo. I wonder if that means they can make deals with other companies without MS's input......could they do that, or would MS just force them to cross platform the project?

It sounds like the same deal Nintendo and Rare came to during the middle of the N64 era. Basically if the relationship sours, Bungie can move on and only have to give up Halo. Any new titles published by MS from here on out will be Bungie's property. Kind of like how Nintendo published Killer Instinct, Conker, Jet Force Gemini, and Banjo Kazooie but the IPs actually belonged to Rare.

The deal can work out well for both parties. If Bungie can't produce any addition bankable hits for MS, then MS can sell their shares in Bungie to another company like Nintendo did with Rare. If Bungie keeps cranking out big hits, they can use that leverage to get more of a cut in the profits from MS or choose to just buy out MS and become completely independent.

EDIT: As for as exclusivity goes, most likely their titles will continue to be exclusive to th 360 for the forseeable future. If Bungie and MS split though they'd be free to remake those titles on other plaforms. I hate to keep bring up the Nintendos deal with Rare but this deal seems indentical to it.