If the Bungie rumor is true, what is MS going to do with the money?

[dschumm]

From what I understand right of first refusal does mean that they get to choose if they want a game, but they no longer decide if the develoment cost is worth it. So MS might like a game but passes due to cost.

Example A:
Bugie pitches Game of Big Awesomeness to MS. It will cost MS 30 million to get it. MS number crunchers guess they will only make 20 million back on the game, and it won't push too many more consoles. So they pass.

Game of Big Awesomness is pitched to Sony. There number crunchers think they will only make 15 million on the game, but it will drive NA sales up by 1 million consoles so they go for it.

Example B:
Bungie pitches Game of Big Fun to MS. It will cost MS 10 million to make. It is a casual title so it might expand console sales by a few but the number crunchers think they will only make 4 million back.

Bungie pitches Game of Big Fun to Nintendo. It will only cost Nintendo 5 million becasue it is cheaper to develop for the Wii. Ninetendo think that they can make 10 million from the game and it goes great with Game of Portable Fun Bungie is making for the DS.


Here we have two examples of games Bungie wants to make that Microsoft likes and has a chance to buy but passes on. If they had more control over Bungie they could cut cost but exploiting cost savings in the company and retaining the higher profit percentage. They could change the game focus for broader appeal in their demographic. Or they could just move Bungie onto their next idea. But if Bungie is a 3rd party, even with certian agreements, they could be making a lot of exclusives for other companies. This kind of development allows them to grow in size and scope as a company beyond the one trick pony status of Halo. It is a gamble but I also think they would retain a higher percentage of profits on future Halo projects even if they never look at another console.