SEPT. 30, 2007 • The rumor mill has been delivering sage counsel lately. Just four days after the big Halo 3 launch comes a Seattle Post-Intelligencer blog entry that developer Bungie is parting ways with Microsoft Games seven years after it was acquired by the latter. The rumor even claims Microsoft will sit on the information until Oct. 6 so that the corporation doesn’t have to report the change for its quarter ending Sept. 30. Sure enough, Microsoft announced on Oct. 5 that it was blessing the spin-off of Bungie into an independent studio, albeit with a equity interest in the new venture, as well as retaining ownership of the Halo franchise. Bungie also agreed to work on upcoming Halo titles, and to keep Microsoft platforms as its major focus. Bungie, originally founded in Chicago, will remain in Kirkland, Wash.

Impact: Microsoft has protected its interests sufficiently that it can give the developers at Bungie some independence to work on other projects – especially if it brings significant new IP to the Xbox 360. Neither will Microsoft miss out on Halo 4 in the arrangement. Bungie shipped big Halo products in 2001, 2004, 2007 so we could expect the next one in 2010.  Halo 3 is out and making its impact on Xbox 360 sales. Consumers don’t care if Microsoft owns Bungie or not.  They just care that Halo 3 is here and only on Xbox 360.