http://news.cnet.com/8301-13772_3-20003777-52.html
Source 2Video game giant Activision scored a major coup Thursday with the signing of a deal to publish the next franchise from Halo developer Bungie.
The partnership is intended to last 10 years and means that Activision, which is owned by Activision Blizzard, will be in a position to publish several iterations of Bungie's next franchise. Given the tremendous success of the various Halo games--all told, they have generated more than $1.5 billion in sales--an exclusive deal to publish Bungie's next series of games is a very big win for Activision, and a blow to its rival, Electronic Arts.
It's also, of course, a loss for Microsoft. That's because Bungie, which until 2007 was a Microsoft-owned studio, has had its games published by Microsoft Game Studios and has developed solely for the Xbox 360 platform and Windows computers. But now, Bungie's new deal--the financial terms of which were not revealed Thursday--will be cross-platform, meaning that the developer will likely be working on games for Sony's PlayStation 3 and possibly Nintendo's Wii.
Bungie will still finish work on the latest Halo title, Halo: Reach, which is scheduled for a fall 2010 release.
Bungie "probably didn't want to be locked into one platform," Colin Sebastian, an analyst with Lazard Capital Markets, told CNET News. "That's probably a big part of (the deal). The new deal is multiplatform."
Sebastian also said that while he didn't have any knowledge of Electronic Arts or any other publisher negotiating with Bungie, he would think that the studio would have looked at all its options before signing with Activision.
"I think there were probably multiple publishers looking at the deal," Sebastian said, "and there was obviously a financial commitment, [so Bungie went with the] publisher Bungie felt they could work best with."
Under the deal, Bungie will continue to own the intellectual property of its games, but Activision will have a 10-year exclusive right to publish them on a variety of platforms and devices. This is the first non-Microsoft partnership for Bungie since splitting from the Xbox maker in 2007. That means, according to Activision, that Bungie will now have a much broader scope for getting its games into players' hands.
In a report on Thursday morning, Sebastian wrote that he sees the deal as positive for Activision "We believe that the new publishing agreement with Bungie provides additional long-term visibility for Activision Publishing, which currently is largely dependent on the Call of Duty franchise for the bulk of its operating profits."
Sebastian also told CNET that while he didn't have any knowledge of the terms of the deal, he is certain that Activision was able to see what Bungie is working on and that, based on that analysis, the publisher was likely able to determine that it was to its benefit to make the deal and set its duration at 10 years.
And because, Sebastian pointed out, Bungie has a very well established track record and that the developer seems to have established that it knows the formulas for making commercially-viable games, he's optimistic that Activision was able to sense that it has several future hits on its hands.
"I think from Activision's perspective, if they're not going to own the intellectual property," Sebastian said, "they want some visibility that they can still publish games based on the IP. [And] that's one point in Activision's favor. It seems like they will be able to publish three or four versions of whatever it is."
http://g4tv.com/thefeed/blog/post/70432 ... sion-.html
Wow, this a real game changer (pun intended). How do you guys see this playing out? I really don't keep tabs on this kind of thing so I honestly can't give an opinion without sounding like a moron.As the drama surrounding Call of Duty developer Infinity Ward continues to unfold, Activision has dropped a new bombshell: the company has signed a 10-year publishing agreement with Bungie to bring its "next big action game universe to market."
Activision will have the rights to publish the new intellectual property "on multiple platforms and devices." Does this extend outside Xbox 360? The press release doesn't say, but it seems likely, and in a video released to the press, Activision COO Thompas Tippl said the partnership was about bringing Bungie's next universe to "the platform of your choice."
Bungie, like Respawn Entertainment, retains the rights to the intellectual property. Few details on the project were released, not even a codename or vague release date. For all we know, Bungie's next project is years away. According to the announcement release, the deal has been in the works "over the past nine months."
In a bizarre coincidence, the news comes the same day Halo: Reach moves into open beta for select users, while the rest of the gaming world waits for the official switch to be turned on next week.
"It’s no secret that while the full might of our studio has focused on making Halo: Reach," said the studio on Bungie.net, "another core team, led by our co-founder and Studio Creative Director, Jason Jones, has already begun laying the groundwork to bring our newest universe, stories, and characters to life. Next up, the most ambitious game we’ve ever made, Halo: Reach. Built upon ten years of experience developing the Halo franchise, we’ve assembled the best team, the best technology, and the best talent to ensure that Reach is the game our fans deserve. Strap in and buckle up tight, we’re sending our baby out with a bang."
Bungie claims the partnership is simply to help the company's games reach a larger audience.
"Today, we’re poised to open a new chapter in Bungie’s history—one that begins with a partnership between Bungie and Activision and ends where we always knew it would, with World Domination," said the studio, with their tongue always firmly planted in cheek. "Our Next Big Thing now has a concrete path, leading from our studio to the platforms of our choosing. The business formalities are behind us. Our Constitution remains unchanged. We are still Bungie, still independent, and now we are free to bring our stories to an ever bigger audience."
Bungie remains partnered with Microsoft for Halo: Reach, scheduled for a release this fall on Xbox 360. Microsoft acquired Bungie back in 2000, converting their sci-fi shooter, Halo, into a breakout Xbox launch title. Bungie also produced Halo 2, Halo 3 and Halo 3: ODST for Microsoft. The studio managed to broker its independence from Microsoft just days after the launch of Halo 3 for Xbox 360.
Activision continues to deal with the fallout from the firings of former Infinity Ward leadership Vince Zampella and Jason West. The duo have since formed Respawn Entertainment alongside EA Partners. While Electronic Arts is funding the new project, they do not control the intellectual property -- Respawn does. Both West and Zampella are suing Activision for control of the Modern Warfare brand, unpaid royalties and wrongful termination. 38 other former and current Infinity Ward employees recently filed suit against Activision over money, as well. It's possible the two lawsuits may be merged together.
Halo: Reach is largely expected to be Bungie's last self-developed Halo release. Microsoft formed 343 Industries, involving talent like Kojima Production assistant producer Ryan Payton and former Bungie content manager Frank O'Connor, to oversee the future of the Halo franchise from within Microsoft.
Read more: http://g4tv.com/thefeed/blog/post/70432 ... z0mWCqB400
