Bungie and Microsoft break up; Bungie now a privately held independent company, Bungie, LLC

October 5, 2007 on 12:24 pm | In bungie, halo, microsoft, press release, video games | 3 Comments

Well, it’s now official. Bungie and Microsoft are no longer sleeping together. As of 10/1/07 Bungie has been released from Microsoft and is now a privately held independent company, Bungie, LLC. This news comes 10 days after the release and already massive success of Halo 3.

What does that mean for the Halo franchise? Will Microsoft look to other developers for the next Halo game, or do they have an exclusive deal with Bungie? Is it even remotely possible that we’ll finally see the release ofHalo DS? Probably not since MS owns the Halo IP, but one can dream.

Bungie quote: “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.�

Microsoft quote: “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.�

Official Bungie press release:

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Bungie Studios Becomes Privately Held Independent Company

Bungie and Microsoft forge new long-term relationship.

KIRKLAND, Wash. — Oct. 5, 2007 — Bungie and Microsoft Corp. today announced a plan for Bungie Studios, the developers of Microsoft’s “Halo� franchise, to become a privately held independent company, Bungie, LLC, in which Microsoft will hold a minority equity interest. As part of this transaction, Bungie and Microsoft have forged a deep and long-term development and publishing relationship focused on the continued success of the “Halo� franchise. It is also the intent of both parties to expand their partnership to include new IP created and owned by Bungie.

Bungie’s 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.

“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.�

“Working with Microsoft was great for us, it allowed us to grow as a team and make the ambitious, blockbuster games we all wanted to work on. And they will continue to be a great partner. But Bungie is like a shark. We have to keep moving to survive. We have to continually test ourselves, or we might as well be dolphins. Or manatees,� said Jason Jones, Bungie founder and partner.

Bungie’s management retained the services of Don Leeds, senior managing director of B-Hive Global, LLC, to assist in the structuring of the deal and negotiating on their behalf. Bungie will remain in Kirkland, Washington, and is always looking to hire excellent talent.

About Bungie

Bungie was founded in 1991 with two goals: to develop games that combine brilliant technology, beautiful art, intelligent stories and deep gameplay, and to sell enough of those games to achieve its real goal of total world domination. Over the past 10 years it has produced games such as the “Marathon� trilogy and the first two “Myth� games, hailed as classics by critics and gamers around the world. Bungie’s “Halo� franchise is an international award-winning action title that has grown into a global entertainment phenomenon, selling more than 18 million units worldwide, logging billions of hours of multiplayer action on Xbox LIVE®, and spawning action figures, books, graphic novels, soundtracks, apparel and more. The critically acclaimed “Halo 3�, released on Tuesday, Sept. 25th 2007, is the fastest-selling video game ever, achieving $300 million in global sales its first week, making it one of the most successful entertainment properties in history. More information on Bungie can be found at http://www.bungie.net.

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Official Microsoft press release

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Microsoft and Bungie Studios to Evolve Relationship

Companies to forge new long-term relationship.

REDMOND, Wash. — Oct. 5, 2007 — 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® 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.

About Bungie Studios

Bungie Studios was founded in 1991 with two goals: to develop games that combine brilliant technology, beautiful art, intelligent stories and deep gameplay, and then sell enough of those games to achieve its real goal of total world domination. Over the past 10 years it has produced games such as the “Marathon� trilogy and the first two “Myth� games, hailed as classics by critics and gamers around the world. Bungie’s “Halo� franchise is an international award-winning action title that has grown into a global entertainment phenomenon, selling more than 14.8 million units worldwide, logging nearly 1 billion hours of multiplayer action on Xbox LIVE®, and spawning action figures, books, a graphic novel, apparel and more. Bungie released “Halo 3� on Sept. 25, 2007 to universal critical acclaim, and first day US sales of over $170 million, making it the biggest opening day in entertainment history. More information on Bungie can be found at http://www.bungie.net.

About Microsoft Game Studios

Microsoft Game Studios is a leading worldwide publisher and developer of games for the Xbox and Xbox 360 video game systems, the Windows® operating system and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed to creating innovative and diverse games for Windows (http://www.microsoft.com/games), including such franchises as “Age of Empires®,� “Flight Simulator� and “Zoo Tycoon®�; Xbox and Xbox 360 (http://www.xbox.com), including such games as “Gears of War� and franchises such as “Halo,� “Fable®,� “Project Gotham Racing®� and “Forza Motorsport®�; and MSN® Games (http://www.games.msn.com), the official games channel for the MSN network and home to such hits as “Bejeweled� and “Hexic®

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT�) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.

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