Rumor: Bungie Shareholders Could Buy the Studio Back From Microsoft

After so many rumors floating abound that the masterminds behind the record breaking Halo franchise would leave Microsoft, an explanation about how exactly this could've happened has surfaced on the net:

Gameinformer Reports:

"Our source stated that Bungie is "tired of Making Halo, and didn't want to do future Halo games." For an unstated, but significant amount of money, Bungie shareholders bought the studio name back from Microsoft. Our source also revealed that even though Microsoft will retain the rights to Halo, Microsoft also has "the right of first refusal on future games." This means that Microsoft has the first shot at publishing Bungie's future titles. How this will come into play if Bungie decides they want future game X to appear on the PlayStation 3 and Wii alongside an Xbox 360 release will make things quite interesting."

More after the jump.

[mandrake]

I can see several reasons why this may actually be a smart move:

1. Allowing the shareholders to buy back Bungie allows MS to maintain goodwill with the developers and ensures that they will continue to favor the 360 platform.

2. By allowing Bungie to buy itself back, but retaining right of first refusal to publish all future games, MS has a better chance of keeping the core developer talent together in a unit that is friendly to the 360 instead of having talented people break away to form other studios. The name Bungie isn't worth much without the talent that made it great.

3. Having Bungie function as an independent studio is more consistent with MS current approach to developing and nurturing new IPs. Instead of buying developers like Sony, MS just provides development funding in exchange for exclusive publishing rights to specific franchises. This worked so well with Gears of War and Ninja Gaiden. This way MS does not get saddled with extra salaries and other overhead when the development teams are idle or not producing hits. Moreover, MS can move a franchise to another development team to infuse fresh talent and ideas into it (i.e., PGR4).

4. Bungie has had a long enough string of hits for MS and it's uncertain how long the streak will continue, but it's unreasonable to assume that it will go on forever. It's like a sports team trading an aging franchise player early enough while they can still get some decent value in return. MS probably figured that keeping Bungie is not worth fighting and pissing off its developers.

I can think of several other reasons but my point is, such a move, if true, is not as stupid as it first seems.

Edit:
Marinelife, Bungie is worth a lot more now than when MS bought it. MS could have given Bungie a break on the buyback price in exchange for first refusal rights. I'm not saying that's what happened, just that this story is not an obvious load of crock.

[marinelife9]

I call BS. The shareholders buying back Bungie with MS retaining the stipulation of first refusal still in writing makes absolutely no sense for the shareholders.

Why pay MS money to still be contracted to them to make games for them with no future guarantees of a higher percentage of revenue sharing.

Great business move for Microsoft but a stupid one for Bungie shareholders. No one is that dumb.

[JsonHenry]

It would be a waste of money to buy back Bungie from MS. If they wanted to make new games they could simply quit and start their own company.

That way they don't have to answer to MS at all.

[sanderFVCKINcohen]

Well it seems like Bungie just got filthy rich through Halo 3 and now are buying themselves back, and just like anycompany like Lionhead Studios or Rare. I THINK!!!

[bootsielon]

"Instead of buying developers like Sony,"

Lionhead Studios, Bungie, Ensemble Studios, RARE among others... seriously, STFU

[Gamespot-equals-EGM]

Wow, Bungie's really smart to be doing this. Damn MS slavedrivers, forcing Bungie to develop only one game for the last 7 years. Fvcking ridiculous.

You can flush Halo 4 down the toilet b/c Bungie probably won't work on it thus it will probably do some major suckage.

[Jack Bauer]

who really heard of bungie before halo?

[Odion]

a ton of freaking people, maybe if you weren't 12 you would have been old enough to know that

[the worst]

good job Bungie Shareholders

[Vojkan]

What ton ODion? Please tell us who? Few people to be precise. Myth and ONI were mediocre at best games. But lets put that aside, this move is stunning for me. How could Microsoft let this happened? Their biggest studio from First party (alongside RARE) is now gone? Sure they keep Halo IP but still this was mistake from MS

[Genki]

And I'm not kidding.

[XxZxX]

no one played Oni before?? it's a good game just lack mutliplayer.

[Jack Bauer]

your talking about the cult gamers a few thousadn maybe a few ten thousand... I'm talking mainstream gamers... 8 million...and I'm 21.... prolly was 12 when it first released

[crck]

Thats why MS bought Bungie and forced them to can the pc version in the first place. But after playing Halo 3 it doesn't really matter where Bungie goes IMO. I thought the game was average at best. Those jaggie graphics and low poly count characters were nasty...

[Megaton]

Am I the only person who played Marathon on the Mac?

[Mr Bubbles]

We've come a long way since Castle Wolfenstein! haha

[chester]

some developers will jump ship to work on other things.
other developers who love halo will be chomping at the bit to work on a halo game and will come on board.
microsoft will promote the hell out of halo 4 and make a ton of money for it.
no smart shareholder in bungie would even consider splitting from MS right now.

[Meus Renaissance]

Nowdays usually turn out to be true. I believe this.

Welcome Bungie, to the PlayStation 3?

[chester]

oh c'mon. you can't possibly believe, even if bungie did split from MS, that microsoft would allow it to happen in such a way that bungie could become a sony entity in any way, right? i mean, if bungie does this, it's to become independent and MS will have something in place that makes sure this is the case.

[Meus Renaissance]

No, I didn't mean that. I meant them releasing games on all platforms, not becoming a Sony entity.

[chester]

ah gotcha. makes sense now, sorry.

[sticky doja]

"Microsoft also has “the right of first refusal on future games.” This means that Microsoft has the first shot at publishing Bungie’s future titles. How this will come into play if Bungie decides they want future game X to appear on the PlayStation 3 and Wii alongside an Xbox 360 release will make things quite interesting."

With that quote in context, I doubt you will see a Bungie game on PS3, unless MS thinks the game sucks and doesn't want to publish it.

[Gizmo_Logix]

sticky doja,

This is precisely why Bungie Team is trying to get way from Microcrap. They are tired of them bossing them around. Typical dictator that MICROSOFT is.

Oh, well. This is what Bungie Team gets for signing a deal with the devil.

[TheUltimatePS3Fanboy]

And now all you haters out there I really don't care about Bungie developing for the PS3 it's just finally good to see them develop something other than Halo.

Oh btw thats a lot of bubbles meus lol!

[Odion]

OR OR this is completely untrue, since MS owns 100% of the company and would rather loose everyone who works there then loose the studio. Because the name Bungie is important, the average gamer doesn't care who works there, just that said company is working on it.

Its like Blizzard, I will buy a Blizzard game just on the fact that their studio made it.

[Arkham]

You're sweating buckets. Are you okay?

By the tone of all your posts on this issue's articles, it sounds like you're hyperventilating. Sit down, take a deep breath.

[deadpreacher]

@6.1

Yet the truth is, is that he's right. Even if every last guy left and a whole new team came in. When they release a new game the ave Joe just see's the name and its a buy. Don't matter who works there. It might matter after a game or two if they suck. He just may say to himself i don't care for them anymore! Must people watch the name (on the box) not the people who work there.

[Gamespot-equals-EGM]

If every current employee of Bungie quit (which seems possible considering the overall tone of this rumor) then news of that would spread on the Internet like wildfire. In other words it would matter if all the important bungie employees quit, especially so soon after halo 3.

[aaquib5]

Why would Microsoft just lose a billion dollar franchise? Im guessing they're feeling alright, because they'll just hire other developers to create games under the Microsoft published Halo brand. But seriously, they paid $50M for Bungie, turned it into a billion dollar franchise, and now they want to say bye?

[hac-hunter]

Microsoft still owns the rights to Halo and any future halo related games, they just don't "own" the people/studio that worked on Halo.

[sticky doja]

They get a good chunk of money, and have the right to decide if bungie publishes on other systems? Thats a good deal.

[xionpunk]

wait, is this confirmed?
Oh and even if bungie did leave, MS still has Halo which is all it really needs. Not taking a shot at MS, but as long as they have Halo they will do well.

[aaquib5]

With all these rumours from trusted sites, as well a doses of "sources" from various sites, you can pretty much say this is true, but not officially confirmed by Microsoft or Bungie.

[skynidas]

confirmed or just a rumor?

[Meus Renaissance]

Atleast for Master Chief is done. Atleast with Bungie. So losing Bungie wouldn't mean they'd lose Halo as Microsoft owns the IP rights of that game. If Halo 4 appears, it'll be an Xbox 360/720 exclusive regardless of who develops it.

[mighty_douche]

will it really be halo without bungie? i might be wrong but doesnt halo 3 run on the same engine as 2? like i said i might be wrong. but halo 4 would require a new engire as im sure they've done all they can with the current one! a new halo engine WITHOUT bungie? thats risky business!

[ChaosKnight]

See... now that would make more sense.

[Meus Renaissance]

Does Bungie even have shares? I can't find them on the stock market.

[BenzMoney]

Bungie, prior to this 'announcement' did not have shares; it is (officially, as of right now, anyway) an entity under the Microsoft blanket. Bungie = Microsoft, and Microsoft = Bungie. Bungie shares, therefore, are MSFT shares. I'm sure you can find those on the stock market.

The fact that Bungie is not a publicly traded company makes the wording of this article awkward. In theory, some very rich people would have had to offer a large sum of money to Microsoft to release Bungie at which point they could then incorporate it so as to be listed on the stock market, or own it privately.

Since there are, as of yet, no of Bungie listed, it is either:

a) Still owned by Microsoft; or,
b) Privately owned.

[Sayai jin]

aThis is why I have waited to comment. I can not find any share holder info for bungie. If my sources are correct it is microsoft shares that are Bungie. I can not verify this at the time. I think if this is true and MS gets some fresh eyes on new Halo games it could be risky, but also pay off with a new and possibly better engine, better graphics, the story line is already there. I think the Halo fans will still buy this ge if new engineers work on it. One thing everyone knows is that MS has the deepest pockets and will pay for the best. Halo help put the Xbox and 360 on the map, but MS put Bungie on the map. This is one of the best and most lucrative partnersips in gaming histor so I have a hard time believing this. Who knows crazier things have happened.

[riksweeney]

Bungie can now develop games that run in a resolution higher than 640p.

Seriously though, I look forward to seeing the game Bungie were originally going to make before M$ came along and f cked it up.

[Imknow1]

That's funny, but ohhh so very true.

[razer]

One word to describe you and your fanboy comment.

640p was Bungies decision, or do you think every freakin game is at 640p on the 360? Bashers suck, but an uneducated basher is the freakin worst!

Tell me what "other title" Bungie was going to do before MS came along and fuked it up??? As in making Bungie millions of dollars and giving them a lush studio, etc??? Marathon??? Marathon 2 maybe?? What a joke.

[riksweeney]

It's a well known fact that Halo wasn't going to be a FPS.

http://en.wikipedia.org/wik...

Microsoft bought Bungie and got them to change it into a FPS

[PS360WII]

I'm sure just a really big rumor. It also would be odd to see Halo 4 pop up and then no Bungie name following. I'd get over it, though it would still be weird for a bit.

[ReBurn]

I imagine that for as many years as Bungie has been doing Halo that they are tired of doing the same thing. So if it is true then good for them for taking a stand.

[razer]

was always going to be a trilogy! Good for Bungie how?

You people keep acting like MS stole Bungies identity and made them make games they didn't want too. It was Bungies idea to make Halo a trilogy. It's nobodies fault but there own it took them so many years to get it done.. Bungie would be a struggling independent if it wasn't for MS.

[ReBurn]

Funny how I didn't actually say any of that. All I was saying was that after working on the same series for so many years the company may want to go in another direction. It wasn't a shot at either Bungie or Microsoft.

[mighty_douche]

i said ages ago that i expect bungie to have had enough of living under bill's iron thumb. and making game M$ wants to make rather than what they want to do. Bungie have an amazing group of developers, we all know that, people with this creative personallity dont like being told what to make and when its got to be made for!

well done bungie share holders i say, they're taking a gamble for the benefit of all gamers, not just ones which own a certain console. now bungie are free to let their creative juices flow and i for one cant wait to see what these guys can do outside of the halo universe.

[SnakeCL]

and I posted this very scenario in the other rumor thread, LOL.

[micbelt]

This seems like it gives Bungie the right to name their price now. Yes, MS has the first choice to publish the games, bu now bungie is independent and should be able to name the terms of being published. So, say they want to have some game be multi-platform they can. They just have to make the terms so ridiculous for MS that they don't want to o it. Not sayinh this is the case, but it is possible. This will be an interesting scenario, if it is indeed true.

[ShiftyLookingCow]

If Bungie is tired of making Halo then nothing can change that. As I said before I am sure they wont allow anyone else to buy them ever again if they going free. As for Bungie making new IPs I am more than interested in hearing about them. Bungie is also likely not going to ever leave 360 for exclusivity on any other platform simply because they have a huge Halo fanbase that will pay close attention to what they got to offer next(me thinks "From the developers of the bestselling Halo franchise" has got hundredfold more punch than "From the developers of Gears of War"). If they are going multi with their next games, I think its good for all gamers as they are a capable bunch.

[edit] I also hope they come back to Halo universe every once in a while

[razer]

You will never see a Bungie title on the PS3.. ever! Even if this turns out to be true, MS will do everything in it's power to make sure nothing Bungie goes to the PS3. I say, good for them.. Sony is just as greedy with it's 2nd party publishers and keeps them under lock and key. This is a business and they aren't a bunch of BFF's, MS will make sure the 360 reaps any and all rewards.

[ShiftyLookingCow]

I can certainly see this possible scenario: Bungie demanding MS a lot more money to keep a game exclusive on 360 which MS will gladly pay.

[sajj316]

I never thought I'd see Sonic on a Nintendo console yet we have Mario Olympics coming out soon. Never say never.

[gEnKiE]

Good news for Bungie. Their out of M$ hands now...

[P1MPDADDY]

First you guys bag on Bungie for a 640 resolution game with jaggies, short campaign mode, and limited multiplayer. Now you praise them because of some rumor that would allow them to make games for the PS3. Hippocrates. I actually hope this rumor is true so that way all the PS3 fanboys can finally play a decent game on the PS3 instead of Waiting B3Yond. PS3 fanboys are so petty and bitter it's downright comical.

Pray B3yond!!!!!

[TheUltimatePS3Fanboy]

NO we bagged on M$ for making Bungie make a horrible game.

[eagle21]

I think not. You are like a 360 commercial. People (like over 140 million left estimated by DLC to buy these 3 consoles) will need more than Halo 3. I hate you try to pose as a dual owner (I believe you are), but hype everything 360 as if everyone should love their games. You are a fanboy, don't claim PS360 anymore on this site, I have seen you on 1up, and everywhere, you are a in denial troll. I think that Halo must be good if this many people will buy it so fast. But again, I can't make myself like the game.

[unlimited]

I am glad that they are leaving Microsoft, and making new games. every time someone talks about Bungie the first thing that comes to mind is the word "Halo" ..I can care less about the franchise because most of the Halo games is about the same..I just love MP but the compaign is boring and sucks big time..

[UltramanJ]

I'll pass on all of the rumors until we know the facts, but there's no doubt that if true, and Bungie sees a mass exodus of employees leave, the it's going to hurt M$ tremendously. They have next to no great inhouse development talent and have to rely too heavily on companies like Epic and Bioware for hit games.

[ShiftyLookingCow]

read it, the devs are not quiting from Bungie, instead Bungie shareholders are rumored to have bought Bungie from MS.

[Lavagasm]

Isn't Bungie a private company? I was never aware that a private studio could be publicly traded, let alone be bought out...

[BlenderBoy]

My prediction,
There are employees at Bungie that are committed to the Halo Universe, they will migrate over to the WingNut studio and work on the Peter Jackson project (Halo 4). These individuals will expand the halo universe and consult the other MS studios on HALO related projects (Halo Wars). The other half, will most likely keep the Bungie name and produce other software titles for under the MS umbrella. Don’t forget that when FASA broke up MS stated that they will be soaked up into other MS studios maybe the re-organization of Bungie, caused the breakup FASA to happen sooner.

Maybe this is a model that Microsoft will follows with its game studios, They grow them into huge successes get a couple of good games out of them and sell them back into 3rd party developers. You have to admit Bungie has prospered greatly over the past years with Microsoft ( this was a symbiotic relationship). Maybe EPIC or a studio like them will be next for the next couple of years, this will keep the games fresh and exciting.

RARE or Lionhead as not been sold off yet is because they have not created the successful games that Bungie created, I am sure if it happens they will be sold off again to 3rd party companies and other will be added to the MS portfolio.

[fjtorres]

http://archives.cnn.com/200...

MS BOUGHT 100.00% of Bungie in 2000.
Ergo there is nobody left to "buy back" the name.
The only Bungie shareholders are MS shareholders.

[ShiftyLookingCow]

yeah that makes no sense

[SofaKingReetodded]

alot of xbots are gonna hi-tail it out of here...lol

[LeonSKennedy4Life]

Trust me...

...they'll stay.

They always stay.

There's nothing we can do about it.

[fjtorres]

Its absolutely official: Unreal Tournament for PS3 is delayed til 08.
http://www.gamasutra.com/ph...
http://www.n4g.com/News-718...

And you're right: XBOX fans are crying a river.
Laughter-induced injuries will do that to you.

[Bolts]

Without Microsoft, Bungie is nothing. If it weren't for MS buying them out to make Halo for the original Xbox the studio wouldn't even exist now. Halo would've been crushed on the PC by superior shooters at the time like Battlefield 1942 and be forgoten. There would be no Halo franchise without Microsoft's Xbox and it's hype machine.

[dazreah]

If there are any shares they belong to microsoft they own bungie http://www.games-industry.b... check the last part.

[dachiefsman]

speculation is a waste of time.

[Rhezin]

lol look at all the sony scum vulturing over Bungie, and wait aren't they the ones who hated halo? interesting. My bet Bungie starts making Mac titles.

[iceice123]

Then their games could go to steam. Gamesforwindow is trash. I know no Halo game wouldn't but as long as their next games could I'm fine with it.

[LeonSKennedy4Life]

I don't see them going multi-platform...I just think they want to stop with the whole Halo thing. Wouldn't you be tired of it?

I'm glad for them though.

[The BS Police]

Becuase Bungie Shares = MSFT shares.

I wish them goodluck on purchasing Microsoft, lol.

[gololo]

I regard Bungie really highly...I mean Halo series is really good...I wish they could make games for other platform as well.

[jackdoe]

Even if this rumor were true, this wouldn't change the fact that Microsoft would in everything but name still be the owner of Bungie as they have first right to publish anything they make. The multiplatform game idea is funny though. Imagine, a PS3 or Wii game published my Microsoft...

[Wii60_FTW]

how dumb can these "shareholders" be? they want to buy back bungie so they can make games for ps3?" HAHAHa. the whole point is to MAKE money, not burn it. IDIOTS.

[DZNetworks]

I'd like them to see how the wii handles Halo and then come crawling back to microsoft.

[Dogswithguns]

a producer having an idea of making more games for other platform, that means more money, smarter business.

[Gamespot-equals-EGM]

.............................

[Nameless]

Microsoft would rather fire all of Bungie then let their flag ship studio release a game on the Playstation 3 & since Microsoft has first & final say in what systems a future Bungie game gets released for you can count out the Playstation 3. That will never happen.

[iNcRiMiNaTi]

=/ double post

[iNcRiMiNaTi]

same as gears of war....because of MS's marketing and the amount of things they did to advertise these games, they became hits....gears of war isnt even that good...it basically a playable tech demo for unreal engine 3, UT3 will be the 1st true game to usee the engine correctly from epic....and what was bungie's last game before halo?....oni??...that game was crap, it was a corny 3rd perso shooter, didnt even get on my radar like halo did... and dont give me that "it was a PC game 1st" crap cuz it wouldve tanked if it was a PC game....ask the majoirty of PC gamers what they think of halo and theyll tell u the game is garbage,theyll tell u how its just another generic FPS, it doesnt compare to CS and Battlefield...which is true if ur only plaing PC games...Battlefield can have 64 players with sea, air and land vehicles online....the fact the MS pushed it for consoles made the mainstream market take notice and thats how it blew up...it revolutionized FPS for CONSOLES....if it wasnt for MS they wouldve released it on PC and failed...

[FrostyMelon]

Good for Bungie, you had to wonder how sick they were getting of Halo.