This morning we received a tip from 8Bit Joystick writer Jacob Metclaf, telling us that "a friend of [his] who has someone close that works at Bungie" is privy to inside information that Microsoft is allowing the Halo developer to just up and leave. Let that one sink in: Microsoft, in its apparent benevolence, is reportedly allowing its cash-cow acquisition to graze in other pastures, content to simply retain the Halo brand. It's an absurd notion, and we at Joystiq HQ chortled a bit this morning before shrugging it off. Then we got flooded a few dozen more times, all deriving from the same source. So it's time to address the story.
That's not to say it couldn't somehow happen: after all, there are penguins who go shopping for fish. But why on Earth would a multi-billion dollar company even think to let go of what is arguably their greatest acquisition – a developer that can single-handedly make its Xbox division profitable in a matter of months? The Bungie name alone is worth millions – potentially billions – to the company.
We've read various internet folks justify this rumor by comparing it to Microsoft's acquisition of Rare in 2001. Let's clear up some confusion here, too: Nintendo only owned a 49% stake in that developer when Microsoft bought a 51% majority. In contrast, Microsoft currently owns 100% of Bungie. While it may be true that some of the dev's employees are moving on – much as they have in the past (see: Wideload Studios, Certain Affinity, Giant Bite, Double Aught, etc.) – we're quite confident that Bungie Studios isn't going anywhere. When asked directly about the story, a Bungie representative declined to comment citing the studio's policy of not commenting on rumors.
Reader Comments (67)
Posted: Oct 2nd 2007 4:00PM (Unverified) said
no no your wrong my friend, eventhough i'm a sony fan and i'm happy theire ass is getting kicked by consumers for being greedy, i would love to see M$ loosing big in this market because they are in it with the idea of monopolizing it the same way they did with pcs. as for halo, great story shitty level and character design, except for online play and multiplayer. bunie is multiplayer period. and yeah, they suck ass in the graphics department also.... i hope they do break up cause the horrible existence of xbox is attributed to halo 1 which i never liked, and that annoying flood bull crap, aaaagggghhhh.
again good story horrible execution.......
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again good story horrible execution.......
Posted: Oct 2nd 2007 11:18PM (Unverified) said
@ SS
Thank you for demonstrating just why spony fanboys are the lowest form of life on the planet. You actually wish HARM on those connected with something you don't own. That crosses the line form being a bad fan to being a bad person. hope you like the company.
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Thank you for demonstrating just why spony fanboys are the lowest form of life on the planet. You actually wish HARM on those connected with something you don't own. That crosses the line form being a bad fan to being a bad person. hope you like the company.
Posted: Oct 2nd 2007 10:45AM (Unverified) said
I'm not sure if the Joystiq article above is correct. What is Joystiq's source on Microsoft owning Bungie 100%? When I look back to Black Monday, it seems like Microsoft only bought a large controlling share.
It doesn't have to be a matter of Microsoft "letting" Bungie go. Any number of perfectly legal things could happen that Microsoft would feel crummy about, but have little recourse. None of us (including Joystiq) know what the terms were back when Microsoft bought Bungie- but we do know that Bungie was an employee owned company and they all had to agree with the deal- a deal which might include any number of provisions for "7 years down the line"
-Shidarin
http://www.grenadehop.com/
It doesn't have to be a matter of Microsoft "letting" Bungie go. Any number of perfectly legal things could happen that Microsoft would feel crummy about, but have little recourse. None of us (including Joystiq) know what the terms were back when Microsoft bought Bungie- but we do know that Bungie was an employee owned company and they all had to agree with the deal- a deal which might include any number of provisions for "7 years down the line"
-Shidarin
http://www.grenadehop.com/
Posted: Oct 2nd 2007 11:55AM spin cycle said
Bungie had already sold out a large share of their company to Take Two (their publisher for Oni). Oni was a troubled product and required more time and money than first thought. So as is common, their publisher took a stake in the company, presumably for completion money. MS bought out the Take Two share and then some.
Also, Bungie wasn't employee-owned (meaning owned by everyone), it was owned by Seropian and Jones (the founders).
Finally, having known some people whose companies MS bought out, MS doesn't even usually buy the company! They just buy the assets and then interview the employees, figure out who they want to keep, and then incent them (with MS options/grants and bonuses) to come along with the acquisition. The employee's previous options/grants can end up essentially worthless because the company being bought out ends up an empty shell, since everything they had, all their products and even the ability to advertise their own name has been bought out by MS.
MS does this for tax reasons, also it allows them to selectively not buy out parts of the company, company liabilities, and persons at the company that they don't want.
I had a couple friends at Bungie when it was bought out by MS and Connectix when it was bought out by MS.
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Also, Bungie wasn't employee-owned (meaning owned by everyone), it was owned by Seropian and Jones (the founders).
Finally, having known some people whose companies MS bought out, MS doesn't even usually buy the company! They just buy the assets and then interview the employees, figure out who they want to keep, and then incent them (with MS options/grants and bonuses) to come along with the acquisition. The employee's previous options/grants can end up essentially worthless because the company being bought out ends up an empty shell, since everything they had, all their products and even the ability to advertise their own name has been bought out by MS.
MS does this for tax reasons, also it allows them to selectively not buy out parts of the company, company liabilities, and persons at the company that they don't want.
I had a couple friends at Bungie when it was bought out by MS and Connectix when it was bought out by MS.
Posted: Oct 2nd 2007 11:45AM spin cycle said
They will not single-handedly make the Xbox division profitable in a few months.
The Xbox division lost well north of $2B before the 360 even launched. And this includes the profits made from selling Halo 1 and 2 in that time period!
As to Bungie leaving, unless Jones and Seropian negotiated taking the name with them when Bungie was bought out by MS, there's no way. Because MS owns all the assets, including the name.
The only Bungie person left of any significance (perhaps at all) who was at Bungie before it became MS is Jason Jones. He didn't even want to do Halo 2, let alone 3. I'm sure he's unhappy, from what I understand he liked working on the movie project when it was active, but that he's not been interested in the games in some time.
So he'll likely leave, for what it matters. As mentioned above, the last two game were done largely without him anyway. Jones leaving won't impair MS' ability to make more Halo cash-in games, or probably even affect their quality.
The Xbox division lost well north of $2B before the 360 even launched. And this includes the profits made from selling Halo 1 and 2 in that time period!
As to Bungie leaving, unless Jones and Seropian negotiated taking the name with them when Bungie was bought out by MS, there's no way. Because MS owns all the assets, including the name.
The only Bungie person left of any significance (perhaps at all) who was at Bungie before it became MS is Jason Jones. He didn't even want to do Halo 2, let alone 3. I'm sure he's unhappy, from what I understand he liked working on the movie project when it was active, but that he's not been interested in the games in some time.
So he'll likely leave, for what it matters. As mentioned above, the last two game were done largely without him anyway. Jones leaving won't impair MS' ability to make more Halo cash-in games, or probably even affect their quality.
Posted: Oct 2nd 2007 12:39PM 007craft said
Bungie is not worth all that much. Its halo thats worth money. If Bungies next game is not halo related, I garuntee it wont be nearly as popular, less then 1 million for sure. Personally I wont be buying it. I hate bungie. I hate them because they have gone mad with power. They think their the best and can do anything. This include leaveing a custom games server browser out of halo 3 and making you play matchmaking. They want you to play the maps their way, not your way. Its not like they forgot to add this feature in the game. It was in there and they removed it. I can never forgive them for that. Forge and custom games are useless cause you can never get anyone to paly.
Posted: Oct 2nd 2007 1:07PM (Unverified) said
u need moar frenz.
... but I see your point. Could come in a future patch, but in the meantime... see above.
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... but I see your point. Could come in a future patch, but in the meantime... see above.
Posted: Oct 2nd 2007 1:46PM (Unverified) said
Bungie sucks ass. Its the halo name that sells (dont ask me why it does). But its actually a good thing they are moving on. Maybe the next halo game wont be such a lazy, recycled effort.
Posted: Oct 2nd 2007 1:56PM leobebes said
I can't think of a better symbiotic relationship in the gaming industry than Bungie and Microsoft. Of course this rumor is going to surface, it's currently the industry's biggest target. But what I find kind of funny is with the recent success Microsoft has had with its 360 of late how come you don't hear some of Sony's in house studios jumping ship to greener pastures? How come I don't hear Western developers like Naughty Dog rumored to be jumping ship? Hell if I was David Jaffe or Naughty Dog why wouldn't I want to develop for multi platforms considering how Sony's western market penetration has been of late. This rumor is silly, but I guess I can see why Bungie, or some of its developers would want to jump ship since they brand name has become so huge, but why some of Sony' s western developing studios have not been mentioned in leaving Sony has really tickled my curiosity.
Posted: Oct 2nd 2007 2:34PM Tez said
I hope they do it. And I hope Sony buys them and it's the Microsoft/Rare thing all over again. Not because I hate any company, it would just be entertaining for me.
Posted: Oct 2nd 2007 2:45PM (Unverified) said
if MS retains the halo brand, and bungie does not wish to continue to create halo games, why would MS "need" to keep them? bungie has created some great IPs. i loved oni, halo and myth well before i realized that the were all created by the same studio that is creating halo games.
however, their original ips never really sold outrageously well. even myth was eclipsed by the balder's gate series. marathon sold well, b/c it was one of the few solid games available exclusively for the mac at the time.
w/o halo perhaps ms is worried that they may become their next rare. [which i could imagine MS letting go of before bungie]
you can ALWAYS count on bungie for a hit. but halo is undoubtedly their homerun. the problem is that every team needs players you can count on for hits, even if it doesnt go out of the park everytime like halo did. i hope that MS keeps them on board, with the support of MS' financing bungie has tons of hits and even a few homeruns left.
however, their original ips never really sold outrageously well. even myth was eclipsed by the balder's gate series. marathon sold well, b/c it was one of the few solid games available exclusively for the mac at the time.
w/o halo perhaps ms is worried that they may become their next rare. [which i could imagine MS letting go of before bungie]
you can ALWAYS count on bungie for a hit. but halo is undoubtedly their homerun. the problem is that every team needs players you can count on for hits, even if it doesnt go out of the park everytime like halo did. i hope that MS keeps them on board, with the support of MS' financing bungie has tons of hits and even a few homeruns left.
Posted: Oct 2nd 2007 3:07PM ZippyDSMlee said
No studio can survive under endless amounts of pressure they need to dev into other fields, this is a good thing because Bungie can relax and hobble together new old/IPs at their own lesuier.
The only thing that would make this bad if half the staff up and leaves, the staff is what makes a dev.
No matter what happens good luck to them.
The only thing that would make this bad if half the staff up and leaves, the staff is what makes a dev.
No matter what happens good luck to them.
Posted: Oct 2nd 2007 5:02PM (Unverified) said
Does nobody remember how close Nintendo and Rare used to be?
Histroy repeats?
Histroy repeats?
Posted: Oct 2nd 2007 5:11PM (Unverified) said
David...you are a tool.
Posted: Oct 2nd 2007 5:14PM (Unverified) said
Newsflash: Nintendo buys Bungie, stand by for: Master Chief Golf, Master Chief in smash bros. brawl, Halo Carting...
Posted: Oct 6th 2007 11:41AM (Unverified) said
Haha, someone's eating their words now.
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