Discussion in 'Console Industry' started by Acert93, Oct 5, 2007.
Posted on Gamersyde (from NewGaf):
Official PR: http://biz.yahoo.com/prnews/071005/aqf020a.html?.v=2
Not as dramatic as I though it'd be.
Given that release, I'm going to assume that the points in Acert's post are thus fully the case. So, it's completely in line with what a lot of us have been hypothesizing all thread long; a spin-off in the most classic sense, except that rather than keeping a majority share as is frequent in a spin-off, MS will retain a minority stake while retaining voting/directors rights.
* Bungie will develop 2 more Halo games in Collaboration with WETA published by Microsoft
Hey I wasnt that far off. lol
Sounds pretty close to my predictions earlier..
I think the most interesting aspect (if true of course) is this:-
Sounds to me like a great insurance plan to me.. If Bungie's success with the Halo franchise can carry into at least one new IP then should the event occur that MS's competitors drastically overtake them in terms of market share, MS can still make alot of money developing games on multiple platforms with an overall wider install-base (think, Halo 2, with it's pre-release hype, releasing on Xbox1 & PS2 for example.. Sales could have been astronomical..)
Interesting proposition but I guess it still depends on just how flexible MS are going to be in this regard..
Cool but I have a few questions:
* I thought someone else already owns the rights to Myth ?
* What happens if Bungie decide to do a (small) game for DS or PSP ? There is no equivalent on MS platform, an XBL arcade ?
While not specifically clearly outlined, I will just say this: If Microsoft doesn't have an iron clad (a) right of first refusal for publishing and (b) right of first refusal for exclusive on all Bungie titles then they totally failed. (By iron clad I mean specific terms laid out so Bungie cannot create "poison pills" like "you can get exclusive to New-IP-A for $100M, if not it goes multiplatform... or we go to Sony for a lower amount").
I doubt it's a straight royalty agreement, that wouldn't make much sense. I think whoever bulleted those points just highlighted the financial benefits MS would enjoy as an owner of nearly 50% of the business and called it "royalties." I think dividends would be a more appropriate definition to use here, as truly without a dividend issuance the profits would be retained by Bungie anyway for business expansion.
It does sound a little bit more unwieldy for my taste, but hey it's their company
The actual arrangement is hopefully simpler.
MS controls the boardroom at Bungie and all financial decisions, and all products have to be on the Xbox 360 (does that include future consoles if MS makes one?) From what I have heard about WETA, I am not sure that is a great move. That could actually be a good use of the Rare investment seeing as they have a bit of FPS experience.
Anyhow, I hope we get more details about the specific arrangement, how much money traded hands, and what MS plans to do with said money. I wonder if Bungie themselves will be on a buying spree.
This is the potentially problematic part if they want to be truly independent. I have seen companies break up/down when execs got distracted by boardroom fights... when they realized that the board has increasingly diverging agenda (again).
Hopefully, it just means that MS will only "controls" until Bungie go IPO. At which point, another board will be elected.
Joshua, what's wrong with Weta?
Now Bungie is Microsoft's Isomniac Games. "Second-party developer"
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.
In the End:
Bungie has more freedom,Microsoft would publish all games made by Bungie in the future.
win-win for them.
Well, this isn't really anything like what Insomniac is to Sony.
Btw, the "outline" in the OP has a number of key factual errors. We will have to wait for further specifics... if they are ever released. Go by the PR announcement for now.
Ah okay, I was getting a little uneasy. If they have gone through so much to get their indepedence, they might as well do it properly.
Godspeed, Bungie and I'm glad you got spat out. You must have tasted bad.
Win-Win for all those involved.
Would this releave them of their console exlusivity? I'm curious if they would want to try another console or perhaps branch out on the portable DS or PSP medium. Considering their obvious talent for strong story telling and solid gameplay i bet they have lots of ideas throughout the team for new games.
Weren't there rumors about them working on a different game besides (or instead?) of Halo 3 for awhile? Either way it's an exiting prospect, having Bungie free to express their gaming talent beyond Microsoft control.
This seems like a clear cut win/win for both Bungie and Microsoft. Right to first refusal is key. Making sure they can't do anything exclusive to PS3 is key. I wonder if there are any extra stipulations to games released on PS3 as well (i.e. Timed Exclusives?)
Isn't Halo 3 a massive hit? Bungie creates a blockbuster then breaks away from Microsoft? Something's not right here. The people who are brushing off this news will see that there is something big brewing here and it's not something positive for Microsoft.