Rumorbusters: Bungie is leaving Microsoft

by Ross Miller { Oct 2nd 2007 at 12:50AM }

This morning we received a tip from 8Bit Joystick writer Jacob Metclaf, telling us that "a friend of [his] who has someone close that works at Bungie" is privy to inside information that Microsoft is allowing the Halo developer to just up and leave. Let that one sink in: Microsoft, in its apparent benevolence, is reportedly allowing its cash-cow acquisition to graze in other pastures, content to simply retain the Halo brand. It's an absurd notion, and we at Joystiq HQ chortled a bit this morning before shrugging it off. Then we got flooded a few dozen more times, all deriving from the same source. So it's time to address the story.

That's not to say it couldn't somehow happen: after all, there are penguins who go shopping for fish. But why on Earth would a multi-billion dollar company even think to let go of what is arguably their greatest acquisition – a developer that can single-handedly make its Xbox division profitable in a matter of months? The Bungie name alone is worth millions – potentially billions – to the company.

We've read various internet folks justify this rumor by comparing it to Microsoft's acquisition of Rare in 2001. Let's clear up some confusion here, too: Nintendo only owned a 49% stake in that developer when Microsoft bought a 51% majority. In contrast, Microsoft currently owns 100% of Bungie. While it may be true that some of the dev's employees are moving on – much as they have in the past (see: Wideload Studios, Certain Affinity, Giant Bite, Double Aught, etc.) – we're quite confident that Bungie Studios isn't going anywhere. When asked directly about the story, a Bungie representative declined to comment citing the studio's policy of not commenting on rumors.

Tags: bungie, halo, halo-3, halo3, microsoft

Reader Comments (Page 1 of 2)

Mike @ Oct 2nd 2007 12:53AM

Fact or ficion? Only time will tell.

Gambit @ Oct 2nd 2007 12:58AM

Maybe the company itself (Bungie of course) is just going to split up like Rareware did before Microsoft bought them.

Word of the street(IDF-Digital Ruler). @ Oct 2nd 2007 1:01AM

I knew Kotaku was full of crap.

Btw Sweet Image, I wish that scene from the "Believe" ad was in the game.

Hito @ Oct 2nd 2007 1:02AM

Maybe Bungie will go back to its roots, I wanna see another Myth game :D

Negativecool @ Oct 2nd 2007 1:08AM

"a Bungie representative declined to comment citing the studio's POLICY OF NOT COMMENTING ON RUMORS."

This PROVES that they've already been acquired by Sony!

CONFIRMED!

AgentESPIO7 @ Oct 2nd 2007 1:14AM

If Sony grabs exclusive rights to Bungie... I can't even think of what will happen.

Negativecool @ Oct 2nd 2007 1:32AM

I'm just stirring the pot, I really wouldn't worry. If anyone actually thinks Bungie will be lost to Sony, they need their heads frickin checked.

Dakotah @ Oct 2nd 2007 1:09AM

Thanks for this, my friends have been linking various articles about the rumor to me all day long. Generally with the 'BUNGIE IS LEAVING MICROSOFT!!!! UTOH!' tag line. It wouldn't be so bad if they didn't keep brushing off my comments that it's just a rumor and makes absolutely no sense whatsoever. Maybe when I link this to them they'll stop bothering me with rumors all the time.

blooh (CDF - Ass Ring) @ Oct 2nd 2007 1:10AM

what kind of retard would give up bungie

Einhanderkiller @ Oct 2nd 2007 2:07AM

Microsoft? :)

phattie @ Oct 2nd 2007 1:10AM

M$ buys development of all their games now.. there's no point to having internal studios, when for $50 million you can get NG2 exclusively on your system. Just sign the cheque, wait for the game to ship, and no need to worry about things like employee policy, staffing, etc.

comtar @ Oct 2nd 2007 1:14AM

I find this odd that this rumor happens the same day Sony claims to have a blowout announcement on the 12th.

I don't see why Microsoft would let Bungie up and leave, doesn't make any sense. At the same time, Microsoft will make Bungie make Halo until they die. So it only makes sense Bungie wouldn't want to be making Halo 273 years from now.

I'm kinda down the middle on this rumor, it makes sense, at the same time it doesn't. Seems to me what would more likely happen is head programmers would leave Bungie and make their own company first long before Microsoft would ever let them go. I mean that's what happened at Blizzard and Rare... programmers left to work on their own projects instead of shoveling sequels till the end of time. I'm sure the Bungie team would do that first, long before ever leaving Microsoft.

I will admit though... it does make it interesting that Bungie was even allowed to "Finish The Fight" to begin with.

Draco @ Oct 2nd 2007 10:45AM

this makes sense, I mean if the Halo games are now done what use does Microsoft have with Bungie? this will probably be like Rare, everyone gets a cash payout and then leaves the company.

Bryan @ Oct 2nd 2007 1:18AM

Nice Call 8Bit Jerkass. Next he's going to say his uncle told him that Zelda games are going to the PS3 or that God of War is heading to the DS.

E.J. @ Oct 2nd 2007 1:20AM

I read this rumor this morning and with me, it ended at "a friend of a friend who has someone close that works at Bungie".

Well, my 2nd cousin whose exgirlfriend's friend is married to a Nintendo developer heard that Nintendo is giving up on the Nintendo DS.

comtar @ Oct 2nd 2007 1:25AM

I am your fathers, brothers, cousins, nephews, former roommate...

Word of the street(IDF-Digital Ruler). @ Oct 2nd 2007 1:41AM

And what does that mean?

abbazabba @ Oct 2nd 2007 1:42AM

...So what does that make us?

Mike @ Oct 2nd 2007 1:51AM

ABSOLUTELY NOTHING!

Korova @ Oct 2nd 2007 7:10AM

Which is what this rumor is about to become!

Jake @ Oct 2nd 2007 8:03AM

I love how like 5 people got in on that Spaceball's reference. That just made my day. Thanks.

NorCal05 @ Oct 2nd 2007 11:38AM

My best friend's sister's boyfriend's brother's girlfriend heard from this guy who knows this kid who's going with the girl who saw Ferris pass out at 31 Flavors last night. I guess it's pretty serious.

heckthor @ Oct 2nd 2007 1:26AM

I must say that i could care less about this... but its stupid to think that Bungie would Leave Microsoft or that Microsoft would let go of Bungie, cuz even if Microsoft kept the HALO FRANCHISE i would not be the same if it was not MADE BY BUNGIE... And i say this even though i have never played a Halo Game, not cuz im a Hater, Fanboy (insert system here) but i just never really got interested about it... But credit must be given where credit is Due... Bungie is probably what saved the xbox or gave it a place in the gaming world therefore getting of it would be just Plain Stupid... Im sure is just that a Rumor... Whats Next Retro going to Sony........... Yeah Right...

jL @ Oct 2nd 2007 1:35AM

Come on guys... Bungie's logo is very prominent in Microsoft's current advertising. Nothing is happening. Bungie is staying.

samfish (MSDF- Nurse Outfit!) @ Oct 2nd 2007 1:48AM

Something feels legit about this to me. I'm not sure why, though.

That said, if it's true, we'll find out soon enough, since the article in question said they were holding off on an announcement until the end of the Fiscal Year this week so as to not effect stock prices.

Rususeruru @ Oct 2nd 2007 3:26AM

As unlikely as it seems. There may be a little truth yet. After all Bizarre (granted not owned by MS) was recently purchased but sold/gave the PGR franchise to MS. I have doubts that Bungie would want to lose the rights to the Halo franchise but on the other hand H3 may have been the completion of the contract. What really gives this credibility is the structure of response. No "We don't comment on rumors," but rather, "There has been no announcement." This frees up MS to keep the Gears of War trilogy exclusive and allow Bungie a little reprieve from the Halo moniker. Marathon DS anyone?

rruss79 @ Oct 2nd 2007 1:52AM

This rumor doesn't get any more stupid. First of all MS OWNS Bungie. MS would never let such a lucrative property just split up. MS would SELL Bungie first before letting them just go or they would SELL Bungie back to the founders. The thing is Bungie probably would be worth very much at this point and it would cost a hell of a lot of money for the founders to buy Bungie back. Also MS isn't in the game of giving so you can believe they would want more than want the company is actually worth.

At such a critical point in time where competition is fierce, do you actually believe MS would release one of their prized developer house who will probably net more than a Billon dollars in sells with Halo 3. Not only is this rumor so completely stupid, when you really look at it, it would be about the dumbest thing MS could do ever.

Gator4Life @ Oct 2nd 2007 1:54AM

I'd be shocked if MS let them go. If people at Bungie want to make other stuff besides Halo, they should go start another company. Happens all the time.

Platy @ Oct 2nd 2007 1:59AM

can't happen ... the just small rumor showing that halo4 may appear on wii would explode the internets more than the confirmation of sonic in brawl

LANlord @ Oct 2nd 2007 11:33AM

what if the team splits half..........one stays at microsoft the other works on projects for nintendo or sony

rruss79 @ Oct 2nd 2007 2:14AM

Even if the Founders wanted to go, that still would not be enough for MS to let Bungie Split from them. If that was the case then MS would have probably did the same thing for Rare so I highly doubt this will happen. If Bungie wants to do something besides Halo, they can easily hire more staff to do another Master Chief game while the rest of the team do something else. With the money that Halo 3 will make, do you really think that MS couldn't hire more staff for Bungie so they can do multiple projects. This whole thing is all around silly.

ThornedVenom @ Oct 2nd 2007 2:20AM

Mark my words: you'd have to pry Bungie from Microsoft dead cold bloody hands. If you dare, they'll use all of their cash to hunt down all of your friends and family. xD

Bungie is leaving Microsoft when Hell freezes over.

Shagittarius @ Oct 2nd 2007 2:30AM

BELIEVE

Brian B. @ Oct 2nd 2007 2:52AM

8bitjoystick's response to the nay-sayers:

http://blog.seattlepi.nwsource.com/digitaljoystick/archives/122857.asp

Cuja @ Oct 2nd 2007 2:58AM

Since it was mention, when things start souring up, Nintendo is the first to bail out!

david @ Oct 2nd 2007 3:18AM

!!!! um.... I can see why MS is letting them go. Bungie can't even make a high def game with a team of 100 and 2 years of development. some lame excuse about lightening in the game. really, i guess the lighting in the game blinded me when I saw it stated it ran at 1080p on the box.

if bungie goes, and bizarre creations is already bought up by activision.

wow.... I think microsoft will need to buy the developer who did that Barbie horse race game, it will fit well with thier Rare aquisition.
http://www.ebgames.com/product.asp?product%5Fid=938702

bungie please get a new color pallate, do you have to use every single drab color in the spectrum for halo

Ska Oreo @ Oct 2nd 2007 8:21AM

.....

Just go away.

ukickmydog (NDF - Earth) @ Oct 2nd 2007 10:28AM

wow, you fail

Jack the Ripper @ Oct 2nd 2007 3:23AM

Bungie will be free to go when Microsoft starts hating money.

albinogoldfish @ Oct 2nd 2007 4:35AM

you made me chuckle. Thank You.

KsE 79 @ Oct 2nd 2007 6:59AM

This morning?!

I actually sent you in that information as a tip yesterday. Thanks for the appreciation Joystiq. ;)

Korova @ Oct 2nd 2007 7:22AM

MS can keep all the IP and revenue streams at which point only people are left. And MS doesnt own the people.

So if the Halo contract is over, devs are free to leave maybe MS will give them the bungie name when they do leave? That still doesnt make sense.

I think this rumor results from the devs becoming free agents and they are talking new contracts with MS/Bungie corporate.

Devs say: I want my own firm, I want to go make barbie horse racing for the Wii.
MS says: please, come to your senses, LOOK at all the MONEY!
devs say: that's your money
MS says: tou chez

Martez @ Oct 2nd 2007 2:28PM

misterhearn @ Oct 2nd 2007 7:38AM

Well all the PS3 fanboys are crossing their fingers hell thats probably where the source of the rumor started. M$ owns 100% of Bungie and this is just dumb even from a business standpoint. Its no benefit to either side if this were to happen.

Chalk this one up to Gears of War being on the PS3 and Bioshock being on the PS3, see: Sony fanboy shenanigans! ROTFL, lets see games make all kind of records in its first day and the game before has done the same hmmmm? "Yeah lets leave to pursue our dreams!" WTF come on! Yeah and George Lucas is letting go of the Star Wars franchise so other studios can make films about the brand, this like the rapper is just Ludacris (intentional spelling)

CaptainAmericaX @ Oct 2nd 2007 7:49AM

Dream On Joystiq & The sony defense force...

Jake @ Oct 2nd 2007 8:18AM

MS could sell Bungie, but not just let it go. Publicly owned companies really can't give away valuable pieces of their property. I don't know if Bungie employees could afford to buy enough shares to just own themselves.

Also, reluctance to make more Halo games is a silly reason. MS would gain nothing there by letting Bungie go. They would rather keep Bungie for some other kickass new IP and let another good dev make a Halo game. It may not be quite Bungie quality, but using the existing engine and general gameplay would allow someone to make a pretty decent one.

This rumor probably isn't true though. Keep that in mind. Still fun to talk about.

Ska Oreo @ Oct 2nd 2007 8:18AM

ugh people are idiots.

Ok let's see what's possible and impossible.

Impossible: Bungie leaving Microsoft. Not going to happen since Microsoft completely owns them (Bungie is officially a part of Microsoft game studios)

Possible: Some of the original members are leaving Bungie to start their own studio much like how some members who helped with Halo left so that they could go make stubbs the zombie.

What's possible is probably the actual rumor, but of course Kotaku and Joystiq wanted to get everyone excited so they just put, Bungie as a whole is leaving Micrsoft.

Jake @ Oct 2nd 2007 8:21AM

Actually, the only way this is at all true is if Bungie employees told MS they were starting a new house and MS let them keep their name and/or a few old IP's in exchange for some cash or just to keep the relationship on the up and up.

But seriously, MS would let Bungie make their own new IP for the 360/games for windows before ever letting them just leave. That would be much better than this.