http://blog.seattlepi.nwsource.com/digitaljoystick/archives/122799.asp

Here's a fun rumor. It's rumored that Bungie is leaving MS to become independent. MS will get to keep all the rights to Halo but Bungie will be free to make whatever they want for whomever they like.

We tried asking someone we know who works at Bungie to verify but all we got was a no comment. Oh well, looks like we'll just have to wait until the 6th to see for sure.

The way the article reads it suggest that MS are going to let Bungie dev for other platforms (Halo DS again?).

I would still expect them to stay loyal to the xbox brand since they have been so successful on it.

2nd party

2nd party would still make games exclusively for Microsoft, Leo-J.

Perhaps this will be similar to David Jaffe leaving Sony.

Falo starting Commander Chief on the PS3.

@super etecoon

Bungie would become 2nd party to become independant. Why would do think of leaving microsoft for good?

From Wikipedia   

In the video game industry, a second-party developer is a developer who, while being a separate entity from any console manufacturer, is tied to a specific one usually through contract or partial ownership and makes games specifically for that console manufacturer.

The term "second-party" however, is not an official business term like "first-party" and "third-party", but is used simply to distinguish between third-party developers who develop games for various video game consoles, and developers who, while still a third-party, provide software only for a single video-game console (or consoles for a single company.)

2nd party can't make games for another console...this rumor suggests they are going third-party while giving Microsoft rights to the Halo license/IP. 

This would be a big shame for Microsoft.  They'd run the Halo franchise right into the ground.  Additionally, they'd make a lot less money from their xbox division since Bungee is the only thing helping them approach profitability.

It'd be a great move for Bungee, though. 

Microsoft would never loose Bungie. Plus Microsoft Pays Bungie Employees a Crapload of money so they would have no intention of leaving.
This rumor is so bad.