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:

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

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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Xbox 360 Teams With CBS, MTV Networks, Paramount Pictures, Turner Broadcasting, UFC and Warner Bros. Home Entertainment to Digitally Deliver TV Shows and Movies to Gamers

Xbox 360 will become first gaming console to offer downloads of over 1,000 hours of TV shows such as “CSI,� “Robot Chicken� and “South Park,� and movies such as “V for Vendetta� and “Nacho Libre.�

REDMOND, Wash. — Nov. 6, 2006 — Microsoft Corp. today announced agreements with CBS, MTV Networks, Paramount Pictures, Turner Broadcasting System Inc. (TBS Inc.), Ultimate Fighting Championship (UFC) and Warner Bros. Home Entertainment to bring an initial lineup of over 1,000 hours of hit TV shows and movies to Xbox 360™ gamers in the U.S. by the end of the year. Furthermore, Xbox 360 will be the first gaming console to bring standard and high-definition TV shows and movies via digital distribution over the Internet directly to the consumer.

Beginning Nov. 22, on its first anniversary, Xbox 360 will be the first gaming console in history to provide high-definition TV shows and movies directly to gamers in their living rooms. Xbox 360 gamers will have access to the full-length TV shows as downloads to own and movies to rent via download from the Xbox Live® network, the worldwide leader in online distribution of high-definition gaming and entertainment content. This announcement also brings with it several additional “firsts�:

“This groundbreaking announcement is a win for everyone,� said Peter Moore, corporate vice president of the Interactive Entertainment Business at Microsoft. “It connects our partners with one of the most coveted audiences in entertainment today, and provides even greater value to our Xbox Live community, allowing them to enjoy the games and entertainment they want, when they want it.�

The initial lineup of TV shows available for download to own and feature films available for download to rent will include a growing catalog of popular hits. Examples of content that will be available on the network by the end of year include the following:

• “Robot Chickenâ€? and “Aqua Teen Hunger Forceâ€? from Adult Swim
• “CSI,â€? “Survivorâ€? and “Star Trekâ€? from CBS
• Emmy and Peabody award-winning “South Parkâ€? and “Chappelle’s Showâ€? from COMEDY CENTRAL
• “The Real Worldâ€? and “Pimp My Rideâ€? from MTV
• “Avatar: The Last Airbenderâ€? and â€?SpongeBob SquarePantsâ€? from Nickelodeon
• “Skylandâ€? and “The Nicktoons Network Animation Festivalâ€? from Nicktoons Network
• “M:i:III,â€? Nacho Libreâ€? and “Jackass: The Movieâ€? from Paramount Pictures
• “Carpocalypseâ€? and “Raising the Roofsâ€? from Spike TV
• “Race Rewindâ€? provided by NASCAR.COM
• Select episodes of the original season of “The Ultimate Fighterâ€? reality series and the “UFC: All Accessâ€? shows from the UFC
• “Breaking Bonaduceâ€? and “Hogan Knows Bestâ€? from VH1
• “The Matrix,â€? “Superman Returnsâ€? and “Batman Foreverâ€? from Warner Bros. Home Entertainment

Xbox 360 gamers can access Xbox Live Marketplace with a free Xbox Live Silver membership and a broadband connection. More information about the content available on Xbox Live Marketplace can be found at http://www.xbox.com/marketplaceentertainment.

NINTENDO DS LEADS VIDEO GAME INDUSTRY GROWTH
Touch Generations Titles are Expanding Audience to Female and Older Players

REDMOND, Wash., Oct. 13, 2006 – As both an entertainment and a business, Nintendo DS™ today is the powerhouse of the U.S. video game industry, driving nearly all industry revenue growth so far this year. Without this portable system, the video game industry growth overall would be nearly flat when compared with 2005, according to independent sales figures from the NPD Group of Port Washington, N.Y.

Through September’s end, the U.S. industry overall shows revenue growth of 11 percent when compared with the same period in 2005. Nearly all of the growth comes from the portable DS – without it, the industry would report a mere 1.6 percent growth over the past nine months. DS hardware and software units posted a robust gain of 203 percent when compared to the same period in 2005. The news is the same globally: Nintendo recently announced estimated full-year shipments for DS hardware will grow to 20 million units from 17 million units worldwide, while estimated DS software shipments increased to 82 million units from 75 million.

“Numbers dramatically show the value of reaching out to the masses with products that are compelling and comfortable,” says Nintendo of America President Reggie Fils-Aime. “And this perfectly sets the stage for our breakthrough Wii console, which appeals to both core players and current non-players with an intuitive control system and a price everyone can afford.”

The NPD numbers also indicate that during September, Nintendo DS lifetime U.S. sales surpassed more than 6.2 million units. That total includes more than 1.4 million units of the new Nintendo DS Lite systems, which launched just 16 weeks ago on June 11. It’s important to note these numbers represent Nintendo DS systems actually purchased by customers, not ones shipped only to stores.

“During a home console generation upgrade, consumer interest in existing consoles tends to drop as anticipation for new consoles increases. Hand-held game hardware and software revenues have kept the industry afloat,” says Billy Pidgeon, Program Manager, Consumer Markets: Gaming at IDC. “Hand-held gaming has spurred real industry growth, and Nintendo’s longstanding leadership in this space continues to drive this market.”

This summer, Nintendo launched its Touch Generations brand to help newcomers to video games identify which nontraditional and pick-up-and-play titles are appropriate for them. The response from consumers has been enthusiastic, as four of the top 10 best-selling Nintendo DS games are Touch Generations titles. Touch Generations games include Brain Age™: Train Your Brain in Minutes a Day and the three versions of Nintendogs™. And at the same time, avid players also are fueling growth: the New Super Mario Bros.® title, exclusively for Nintendo DS, is the third best-seller among all video games this year, including console games.

Nintendo’s internal statistics show the Touch Generations brand continues to reach more women and older gamers. Nintendo statistics show a significant percentage of all Touch Generations software buyers are female and are age 25 or older, demonstrating the broad appeal of Nintendo titles like Brain Age and Big Brain Academyâ„¢, which provide engaging and entertaining content for baby boomers and seniors alike.

For more information about Nintendo DS, visit www.nintendods.com. For more information about Nintendo’s Touch Generations brand, visit www.touchgenerations.com.

The worldwide innovator in the creation of interactive entertainment, Nintendo Co., Ltd., of Kyoto, Japan, manufactures and markets hardware and software for its Nintendo DSâ„¢, Game Boy® Advance and Nintendo GameCubeâ„¢ systems, and upcoming Wiiâ„¢ console. Since 1983, Nintendo has sold nearly 2.2 billion video games and more than 375 million hardware units globally, and has created industry icons like Marioâ„¢, Donkey Kong®, Metroid®, Zeldaâ„¢ and Pokémon®. A wholly owned subsidiary, Nintendo of America Inc., based in Redmond, Wash., serves as headquarters for Nintendo’s operations in the Western Hemisphere.

For more information about Nintendo, visit the company’s Web site at www.nintendo.com.

Source: Nintendo

As this sales chart shows, Nintendo continues to dominate..

1. Nintendo DS Lite – 403.435 – (6.246.000)
2. PlayStation 2 – 306.517 – (34.612.000)
3. Xbox 360 – 259.458 – (2.672.000)
4. Game Boy Advance – 177.145 – (31.876.000)
5. PlayStation Portable – 153.353 – (5.175.000)
6. GameCube – 42.286 – (11.165.000)
7. Xbox – 6.495 – (14.302.000)