If they really have a brand new Bungie shooter inbound, Microsoft cannot lose this E3, even too Nintendo.

They are already out of Sony's reach, but at this point Nintendo could still sneak in.

two blows before Sony press conference could be worse than one blow before and one blow after...timing matters, doesn't it? moreover i think that FFXIII wolud have stolen the show and made an halo-related announcement somewhat "uninteresting"

I agree timing does matter...and the more I think about it the more I realize it would be smart on Microsoft's part...but now that the timer is revealed to end after E3 doesn't this make the E3 talk a bit moot?

 Their contract with RARE doesn't cover handhelds.

What's so great about Halo on the DS? I'm just not seeing it.

I think this might be the announcement of Halo Wars and the X-mote, not everything has to be unveiled at the press conferences.

Unveil it after the big 3 conferences to ensure it gets plenty of press plus unveiling avatars and motion in the same confernce would have been just too much.

"Though Microsoft will continue publishing Bungie's titles, the studio will retain ownership of any new intellectual properties it creates. Both IP ownership and the ability to develop non-Halo titles were rumored to be major factors behind the split.

The situation is reminiscent of Sony Computer Entertainment's relationship with Ratchet & Clank developer Insomniac Games. Though the studio is independently owned, it only develops for Sony platforms and its titles represent some of the PlayStation 2 and PlayStation 3's flagship games, usually receiving massive marketing campaigns from publisher Sony.

Said Microsoft Game Studios VP Shane Kim, "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."

One such example of a Halo-related project is Ensemble Studios' Halo Wars, an Xbox 360 exclusive real-time strategy game that takes place in the Halo universe. Set 20 years before the first Halo game, the Age of Empires developer is working closely with Bungie on title to ensure it fits within the established mythology and feel of the franchise.

Bungie has kept quiet about what its next full-scale project will be. Speaking to Shacknews, Bungie's Frank O'Connor recently stated indicated that the company's main upcoming focus is post-launch Halo 3 content and the still-hazy Peter Jackson project. He also added, "Beyond that people are asking what we're going to do. Will we go back and do Myth, will we go back to Marathon? The honest answer is we don't know yet, but we're prototyping. We have some choices, and we have some cool ideas."
"We'll continue to make Xbox 360 games, and we'll continue to make amazing games for MGS," reads a post by O'Connor on Bungie.net. "In that regard, nothing has changed. All that has changed is that now Bungie Studios is once again, the property of the folks of Bungie Studios."

"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 Bungie studio head Harold Ryan in today's announcement. "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."

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Looks like it is gonna be either 360 exclusive or PC/360.