Bungie Studios Independence Discussion Thread

[Carl B]

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.

Yes, they'll be able to make games for other systems now.

I wonder if Bungie themselves will be on a buying spree.

Beyond dev kits and maybe some new hires, what would Bungie buy?

 

[archangelmorph]

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.

Yeah sure..

They've already stated that their company vision is world domination (which will ultimately require the subduing of MS) on both their web site and on the credits of Halo 3..

 

[Carl B]

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.

I agree that the origin of the deal - and the likely future in the boardroom - both smell of acrimony between MS and Bungie. It'll be interesting to see how it plays out, but I would be surprised if an IPO is in the cards; I think it more likely that these shares were bought back by a private consortium and that's more or less that. I found it odd that they referenced Rockstar and Epic and used the word 'public' in the press release, but neither of those two is public in the business sense of the word.

 

[patsu]

Yeah sure..

They've already stated that their company vision is world domination (which will ultimately require the subduing of MS) on both their web site and on the credits of Halo 3..

Aiight, I didn't know that. For world domination, I'd nominate Mike Myers (and Mr. Bigglesworth) as the chairman.

I agree that the origin of the deal - and the likely future in the boardroom - both smell of acrimony between MS and Bungie. It'll be interesting to see how it plays out, but I would be surprised if an IPO is in the cards; I think it more likely that these shares were bought back by a private consortium and that's more or less that. I found it odd that they referenced Rockstar and Epic and used the word 'public' in the press release, but neither of those two is public in the business sense of the word.

You're right, but I think they should consider. Microsoft stock hardly moves no matter what happens. This would be a way for them to get more money.

 

[Pozer]

Why does it seem microsoft is shedding first-party console developement. Between bungie, bizarre creations buyout, fasa closing seems like they are outsourcing all exclusives now. Does MS have any inhouse 360 teams left?

Anyone think this is a preamble to them leaving the console arena after the 360? All this seems like a piece of a much bigger strategy for ms's console future.

Things at rare have been pretty quiet recently. Wonder what all those teams have been upto. Or if rare will be spunoff as well soon.

 

[Geo]

This deal is pretty much what the sensible center was speculating, isn't it?

 

[Zaphod]

* Microsoft has all rights to Halo, ONI and Myth, Bungie will develop Halo for Microsoft and it will be published by Microsoft.

In the case of Oni and Myth they must have purchased them from Take2, so I doubt that part of it.

Reading the press release, the rest of it sounds perfectly reasonable and a like a good move for MS. I wonder how much cash they'll bring in selling off a majority share.

 

[Tim Murray]

Who owns the Marathon IP? That is the only thing that matters here.

 

[assen]

Who owns the Marathon IP? That is the only thing that matters here.

In the credits for Marathon: Durandal XBLA, there were only three companies: Microsoft, Bungie and (what I presume is) the studio that did the actual port/upres to XBLA.

 

[Carl B]

Why does it seem microsoft is shedding first-party console developement. Between bungie, bizarre creations buyout, fasa closing seems like they are outsourcing all exclusives now. Does MS have any inhouse 360 teams left?

Anyone think this is a preamble to them leaving the console arena after the 360? All this seems like a piece of a much bigger strategy for ms's console future.

Things at rare have been pretty quiet recently. Wonder what all those teams have been upto. Or if rare will be spunoff as well soon.

Well first to clarify, Bizarre was never in-house to begin with; their being bought out is a matter of MS not seeing value in out-bidding vs their letting them go per se.

Second, no I don't think this heralds an exit by them at all. Read the rumors thread to see many alternatives to a strong internal first-party, provided by myself and others.

 

[RobertR1]

All in all, a good move for both. The terms may seem complicated but then again this you should expect such from a big company. MS wasn't about to let go of Bungie free and clear.

 

[scooby_dooby]

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."

Sounds good.

 

[Zaphod]

Another thing of note: Jason Jones is credited in the Bungie press release as "Bungie founder and partner", which I in this context would read as equity partner (i.e. shareholder).

 

[Dr. Nick]

Microsoft no longer has any internal developers in Japan and Gears will likely be there second biggest money maker this gen without having to own the company. Microsoft has been able to find success despite have the weakest first party of the big 3.

I wouldn't worry about an exit now, we will see what they do with Rare, which might have affected some of their recent decisions, but I expect there to be at least one more system from them.

 

[Readykilowatt]

Sounds good.

Sounds fishy. Why can't Bungie, "expand both creatively and organizationally" within Microsoft. Why did Microsoft "let them go" after they created a Blockbuster. I share Pozer's view that there is something big going on behind the scenes at Microsoft.

 

[scooby_dooby]

Sounds fishy. Why can't Bungie, "expand both creatively and organizationally" within Microsoft. Why did Microsoft "let them go" after they created a Blockbuster. I share Pozer's view that there is something big going on behind the scenes at Microsoft.

Well obviously because MS was trying to be too controlling over what Bungie did, so they pushed back.

In the end I think it's for the better, as Bungie will probably do a better job managing themselves than the suits and penny pinchers at MS.

 

[patsu]

That and their desire to explore other platforms as evident in the Halo DS prototype.

Do it ! My DS is in the storage now. I will revive it if Bungie release a DS game

There is no reason why Bungie can't go multi-platform.

 

[Readykilowatt]

Well obviously because MS was trying to be too controlling over what Bungie did, so they pushed back.

Why would Microsoft "anger" Bungie if they are the makers of the company's top franchise? Microsoft are not made up of idiots, they could easily say, "Because of the great job you all did on Halo 3, you can now go ahead and create whatever you want at this time with the understanding that you will in the future develop Halo 4" without spinning off the company.

 

[fearsomepirate]

So let me get this straight:

1. Microsoft controls the board.
2. Microsoft controls all financial decisions.
3. All Bungie games must be on Microsoft platforms.
4. Microsoft gets royalties.
5. Bungie keeps new IPs.
6. Bungie games can also be on other platforms...as long as the board and people making financial decisions say so and they're also on Xbox 360.

Sounds like the only big difference from before is #5, meaning if Microsoft ever wants to truly divest itself of Bungie (like if those new IPs aren't as hot as Halo), they could be a somewhat more valuable asset.

 

[patsu]

So let me get this straight:

1. Microsoft controls the board.
2. Microsoft controls all financial decisions.
3. All Bungie games must be on Microsoft platforms.
4. Microsoft gets royalties.
5. Bungie keeps new IPs.
6. Bungie games can also be on other platforms...as long as the board and people making financial decisions say so and they're also on Xbox 360.

Sounds like the only big difference from before is #5, meaning if Microsoft ever wants to truly divest itself of Bungie (like if those new IPs aren't as hot as Halo), they could be a somewhat more valuable asset.

Yap, that's why I don't think the list is (completely) accurate... now that Joshua Luna mentioned that there are factual errors in it.