Bungie and Microsoft Breakup?

By Nick Mokey October 2, 2007

While gamers are still in the grips of Halo 3, perhaps one of Microsoft’s most anticipated releases ever, rumors are circulating that the studio responsible for the series may soon be leaving parent company Microsoft. According to a number of unconfirmed sources, Bungie is sick of making Halo games and wants to strike out on its own – which Microsoft will allow as long as it keeps rights to Halo.

The rumor started with the most dubious of sources, the friend of a friend. A blog post from Jacob Metcalf appeared on both 8bitjoystick.com and the Seattle Post-Intelligencer’s reader blogs, reporting through a friend-of-a-friend that Microsoft and Bungie had split on October 1, but wouldn’t announce the move until October 6 for the sake of quarterly results. According to the source, Bungie was irritated by Microsoft’s handling of its games, including everything from marketing to dealing with fans.

But the research didn’t stop there. GameInformer checked with their own “close-to-Bungie” source and got the same story. This time there were more details on the supposed departure: Bungie shareholders managed to buy the studio name back from Microsoft, and besides the Halo licensing stipulation, Microsoft will also get first crack at publishing any of Bungie’s future games.

So far Microsoft PR flacks are pulling the standard ambiguity line. “There’s been no such announcement. We continue to celebrate the tremendous success of the global phenomenon that is Halo 3,” a one representative told GameInformer. If the original source’s facts were straight, we’ll know on October 6 whether this turns out to be an industry-shaking breakup, or merely an Internet farce.

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Gaming

Microsoft’s Activision Blizzard acquisition is about to clear its final hurdle

microsoft activision blizzard acquisition uk preliminary approval mwiii reveal full 006

Microsoft has had a tough time getting its acquisition of Call of Duty-maker Activision Blizzard approved, but it just cleared a major hurdle. The U.K.'s CMA, which previously blocked the acquisition over concerns about its impact on the cloud gaming market, says that it has "provisionally concluded" that Microsoft has addressed its biggest issues with the acquisition.

Namely, it likes that Microsoft will give the cloud gaming rights for Activision Blizzard games to Ubisoft. "The prior sale of the cloud gaming rights will establish Ubisoft as a key supplier of content to cloud gaming services, replicating the role that Activision would have played in the market as an independent player," the CMA explained in a press release. "In contrast to the original deal, Microsoft will no longer control cloud gaming rights for Activision’s content, so would not be in a position to limit access to Activision’s key content to its own cloud gaming service or to withhold those games from rivals."
Its press release also reveals that Ubisoft will have the ability to make "Microsoft to port Activision games to operating systems other than Windows and support game emulators when requested." Essentially, it's pleased that Microsoft no longer has an iron grip on Activision Blizzard games outside of the Xbox ecosystem and is closer to supporting the deal because of it. Of course, both Microsoft and Activision Blizzard are pretty happy about this.
"We are encouraged by this positive development in the CMA’s review process," Microsoft president Brad Smith tweeted. "We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline."
Meanwhile, an Activision Blizzard spokesperson provided Digital Trends with the following statement: "The CMA’s preliminary approval is great news for our future with Microsoft. We’re pleased the CMA has responded positively to the solutions Microsoft has proposed, and we look forward to working with Microsoft toward completing the regulatory review process."
A final decision from the CMA is expected to be made by October 6. As Smith mentioned, Microsoft's Activision Blizzard acquisition is expected to close by October 18.

Gaming

Microsoft gives Activision Blizzard cloud gaming rights to Ubisoft

Microsoft's Xbox Cloud Gaming Service Enters Beta This Week

Microsoft announced its intention to grant Ubisoft, the publisher behind series like Assassin's Creed and Far Cry, the cloud streaming rights for Activision Blizzard titles if Microsoft's acquisition of the Call of Duty publisher goes through.
This deal was made in order to appease the U.K.'s Competition and Markets Authority (CMA). Microsoft has not had an easy time trying to acquire Activision Blizzard as it has run into heavy resistance from regulatory bodies like the U.S. Federal Trade Commission (FTC) and the U.K.'s CMA. The CMA's complaints centered around the potential monopoly Microsoft could have on cloud gaming if the deal were to go through. There was speculation that Microsoft would divest its U.K. cloud gaming efforts to appease the CMA, but it has now presented this new plan that would technically make it give up control of Activision Blizzard game-streaming rights worldwide for the next 15 years.
In a blog post, Microsoft President Brad Smith explainsed that if the Activision Blizzard acquisition happens, Microsoft will give "cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years" in perpetuity following a one-off payment.
Essentially, Ubisoft will be the one deciding which cloud gaming platforms and services to put Activision Blizzard games on, not Microsoft. Smith claims that this means "Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service -- Xbox Cloud Gaming -- or to exclusively control the licensing terms of Activision Blizzard games for rival services," and that Ubisoft will allow them to honor existing agreements with companies like Nvidia.

Ubisoft has been cloud gaming friendly over the past several years, eagerly putting its games on services like Google Stadia and Amazon Luna. With this deal, Ubisoft says it plans to bring Activision Blizzard games to its Ubisoft+ subscription service. Activision Blizzard CEO Bobby Kotick also commented on the deal, saying that he approves of the deal, but that "nothing substantially changes with the addition of this divestiture" for Activision Blizzard and its investors.
The current deadline for Microsoft's Activision Blizzard acquisition is October 18.

Gaming

Microsoft will shut down the Xbox 360 Store next year

An image of backward compatible Xbox 360 games.

Microsoft announced today that it plans to shut down the Xbox 360 in 2024, an extremely disappointing move that's bad for game preservation.

The Xbox 360 Store, also known as the Xbox Live Marketplace, has been present on Microsoft's second game console in some form ever since it launched in 2005. In recent years, storefront shut down for older systems have become more common. The 3DS and Wii U eShops went offline in March despite player anger, while Sony planned to shut down the PS3, PSP, and PS Vita storefronts in 2021 before reversing that decision because of the backlash. Regardless, the loss of any storefront is a dour move for the video game industry, as some games are exclusively available to them and will be lost forever when the store goes offline.