[Industry]: Bungie goes 2nd-party

Xisiqomelir · Post by **Xisiqomelir** » 2007-10-05 11:15am

PR

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.

Haminal10 · Post by **Haminal10** » 2007-10-05 11:22am

I know that this would probably never happen, but after playing MP: Corruption on the Wii, I would kill for Bungie to do a port of the original Halo.

Thats probably as likely as Mario on the 360 though.

Xisiqomelir · Post by **Xisiqomelir** » 2007-10-05 11:30am

Bungie PR

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.

DPDarkPrimus · Post by **DPDarkPrimus** » 2007-10-05 11:34am

Oh god, this rumor was true?!

Xisiqomelir · Post by **Xisiqomelir** » 2007-10-05 11:37am

DPDarkPrimus wrote:Oh god, this rumor was true?!

It's a sound business move for both parties. Bungie doesn't want to be chained to Halo for all eternity, wants to experiment on other platforms and wants a larger share of their own profits. M$ has to yield here or all of Bungie's top talent could just walk, as Rare's did.

EDIT: Good to see Rumourtaku LTTP as usual

Zac Naloen · Post by **Zac Naloen** » 2007-10-05 11:48am

So Microsoft bought Bungie just before they hit to big time and then sold them a few years later?

Sounds like good business.

phongn · Post by **phongn** » 2007-10-05 12:34pm

Zac Naloen wrote:So Microsoft bought Bungie just before they hit to big time and then sold them a few years later?

Spun them off, not sold.

Sounds like good business.

Quite. Bungie was also in fiscal trouble when Microsoft bought them out, too.

TheMuffinKing · Post by **TheMuffinKing** » 2007-10-07 09:35am

Halo for PS3 anyone?

Steel · Post by **Steel** » 2007-10-07 11:13am

TheMuffinKing wrote:Halo for PS3 anyone?

Microsoft still owns the Halo IP though, so it appearing on a platform other than Xbox/PC is unlikely...

Phantasee · Post by **Phantasee** » 2007-10-08 01:36pm

Wouldn't that make them 3rd party, not 2nd? As I understand it, Nintendo/Microsoft/Sony and other hardware makers are 1st, customers like us are 2nd, and people who make stuff for 1st party equpment, to be sold to 2nd parties, are 3rd parties.

Ace Pace · Post by **Ace Pace** » 2007-10-08 01:40pm

Phantasee wrote:Wouldn't that make them 3rd party, not 2nd? As I understand it, Nintendo/Microsoft/Sony and other hardware makers are 1st, customers like us are 2nd, and people who make stuff for 1st party equpment, to be sold to 2nd parties, are 3rd parties.

No, 2nd party as I understand it is an independent developer working primarily with one of the big three and I think publishing under their brand.

Phantasee · Post by **Phantasee** » 2007-10-08 04:43pm

Then what's a third party developer? Someone working with all of the big three?

Bounty · Post by **Bounty** » 2007-10-08 04:49pm

Phantasee wrote:Then what's a third party developer? Someone working with all of the big three?

A first-party developer is a team fully owned and controlled by the hardware developer. A second-party developer is an independent or semi-independent company with strong ties to one hardware developer (usually through partial ownership and/or exclusive contracts) which develops exclusively for that platform, with exceptions for special cases (such as Rare staff working on GBA titles in a desperate attempt not to starve).

A third-party developer just whores itself to the highest bidder(s).

Covenant · Post by **Covenant** » 2007-10-08 04:50pm

Phantasee wrote:Then what's a third party developer? Someone working with all of the big three?

A third party developer is someone more like Stardock, who made Galactic Civilizations, and publishes their own stuff. 3rd Party is more like an indy thing--a non-entity as far as the large companies are concerned. A lot of companies, like Red Octane who made Guitar Hero, are 2nd Party companies. There aren't a lot of purely independant, 3rd party types due to the nature of publishing.

Bounty · Post by **Bounty** » 2007-10-08 04:53pm

3rd Party is more like an indy thing

EA and Activision are indy now?

Phantasee · Post by **Phantasee** » 2007-10-08 04:54pm

So Ubisoft would be a second party?

Bounty · Post by **Bounty** » 2007-10-08 04:56pm

Phantasee wrote:So Ubisoft would be a second party?

Third. They're independent from the hardware manufacturers.

Phantasee · Post by **Phantasee** » 2007-10-08 04:59pm

Ah, I see I instaposted you. Patience would have answered that question.

Okay, so what about hardware? Third party controllers/accessories are made by companies that are not the hardware manufacturer. First party equipment is made by the hardware manufacturer. Second party in this case is the customer?

Bounty · Post by **Bounty** » 2007-10-08 05:05pm

Second party in this case is the customer?

"Hardware manufacturer" is console-specific in this case, the only first- and second-party developers for PC games would be MS and MS-owned, respectively.

If you mean console controllers, then Nintendo/MS/Sony are first-party, any theoretical peripheral builders who are mostly owned and producing exclusively for own console manufacturer are second-party, the rest (independents) third.

The consumer isn't a party in this.

mizuno · Post by **mizuno** » 2007-10-08 05:08pm

As I understand it Microsoft still has the "right of first refusal" on all future Bungie games meaning they have the first crack at publishing all future Bungie games. So unless MS passes on future Bungie IPs.. their games are still pretty much exclusive to the 360?

Phantasee · Post by **Phantasee** » 2007-10-08 05:09pm

Well, that makes no sense to me in that I always understood the second party to be the consumer. I've never heard of second party accessories, though.

Also, nice to see that av/sig back.

Bounty · Post by **Bounty** » 2007-10-08 05:11pm

Phantasee wrote:Well, that makes no sense to me in that I always understood the second party to be the consumer. I've never heard of second party accessories, though.

Also, nice to see that av/sig back.

I don't think there are second-party accessories. None of the Big three would get an advantage from owning a peripheral manufacturer.

And they're placeholders. Salmon is not my colour.

Phantasee · Post by **Phantasee** » 2007-10-08 05:34pm

That's probably why I assumed the second party was the consumer, since there was no real second party. Well, mind expanded enough for one day, I guess.

Also, don't be silly. It looks lovely on you.

Vendetta · Post by **Vendetta** » 2007-10-08 06:01pm

In terms of consoles, "Third Party" refers to any company other than the company that makes the console (the "First Party").

The "Second Party" would be the consumer.

It's a common mistake to overlook that in any derivation of the first, second, and third person grammatical construction.

Bounty · Post by **Bounty** » 2007-10-08 06:02pm

Vendetta wrote:In terms of consoles, "Third Party" refers to any company other than the company that makes the console (the "First Party").

The "Second Party" would be the consumer.

It's a common mistake to overlook that in any derivation of the first, second, and third person grammatical construction.

Where do you get your information? Because it's, well, wrong, unless there's two definitions of "second party" these days.