bungie signs with activision

http://au.xbox360.ign.com/articles/108/1086793p1.html

Quote :

April 29, 2010 - This morning, Activision and Bungie announced a 10-year partnership to publish the newly independent studio's future games. The news comes amid a flurry of legal posturing between Activision and its internal Call of Duty development studio, Infinity Ward. But analysts say the two stories are not as closely tied as they may appear.

Wedbush Morgan Securities analyst Michael Pachter told IGN this deal doesn't mean Activision is looking to replace the Call of Duty series as its main videogame franchise.

"It's not a replacement for Call of Duty, and I don't think that the brand has imploded, Pachter said. "Call of Duty will be fine, the majority of the 20 million people who bought it have no idea who Infinity Ward is. It probably won't sell 20 million copies, but it will sell at least half that, and I would say that the brand is still quite strong."

Pachter said this announcement won't necessarily cover up the current litigation between Activision and its Infinity Ward developers, and added that this deal could prove positive for the publisher if Bungie's games sell close to what Call of Duty sold.

"It's hard to say that this will 'blanket' the negative Infinity Ward news, but at least the deal demonstrates that Activision can have a solid relationship with a world-class developer," he added. "This is a publishing partnership and not a distribution arrangement. That means that instead of normal distribution margins of around 10%, the deal probably allows Activision to participate in profit upside, suggesting that their margins could end up between 15 – 20% if a future Bungie game sells a crazy number of units."

"My guess is that any future Bungie game will sell at least 10 million units, as they will appear on multiple platforms for the first time. As a reference, the typical Halo game made by Bungie sold around 10 million units worldwide over its life at an average retail price of around $50, and these appeared only on the Xbox/Xbox 360. If future Bungie games are as popular as Halo, they could sell as many as 15 million units on Xbox 360 and PS3 combined."

Pachter said he expects to see a new Bungie title every two years, and added that sales of its titles could reach upwards of 15 million units.

"At the 10 million unit level, Activision will probably generate 15% operating profit, so at $450 million in wholesale sales, they will generate around $65 million in profit, or $0.03 per share. At the 15 million unit level, they will probably generate 20% operating profit, so at the $700 million wholesale sales level, they will generate around $140 million in profit, or $0.07 per share. Bungie is a relatively productive studio, and it is likely that we will see a game from them every two years, beginning next year."

Electronic Entertainment Design and Research Jesse Divnich told IGN the Bungie agreement won't be as lucrative for Activision as its past deals, noting they do not own Bungie like they do Infinity Ward.

"In the eyes of the gaming community, Bungie may equal an Infinity Ward, in terms of expertise and quality, but not financially. Bungie's deal with Activision is just a publishing arrangement, which typically produces smaller revenues and margins for the publisher, whereas with Infinity Ward, Activision owns all the rights and controls all the revenues," Divnich told IGN.

"Still, this is positive news for the gaming community, Bungie, and Activision. Gamers finally get a multi-platform Bungie title, it will be distributed by the largest publisher in our industry, and Bungie retains creative control. A win-win for all."

discuss

Sicking news not the fact that they will probably develop for the PS3 but the fact that they are working with Activision its a shame reach will be my last Bungie game because i refuse to line koticks pockets any further Bungie will probably get screwed over just like IW

now now dont jump to conclusions i think bungie know what they are doing and im pretty certain they will learn from iw mistakes im just gonna see how it unfolds

Seen the bungie forums? http://www.bungie.net/Forums/posts.aspx?postID=43399490&postRepeater1-p=9 no one is happy about this

the problem i have is everyone is jumping on the activision hate wagon and not thinking about bungie. activision dont make the game, bungie does so expect some AAA shooters in the future

Why not Microsoft?

Why Activision?

Biggest DICK MOVE EVAR!!!

Blixtstorm wrote:

Why not Microsoft?

Why Activision?

Biggest DICK MOVE EVAR!!!

because of there size maybe

Ladies and gentlemen we've found the company that will be the new EA.

Oh christ.... that's bad lol

Bungie has pissed off their loyal fans before. They used to only make games for Apple computers then they started porting to PC which didn't make their fans happy. Than they got everyone excited about Halo CE for both PC and Mac but signed onto MS to make it exclusive for Xbox. Ports would come years later but their loyal Apple fans hated them too much to ever come back. Then they left MS and their loyal Xbox fans weren't happy. Now they sign with the most hated publisher on the planet to make games on all platforms and their loyal Xbox fans may feel so betrayed their view of Bungie will be tainted forever.

At least we will still get Bungie games and 343 Industries will keep making awesome Halo games exclusive to Xbox 360. PS3 fanboys will never have that.

bungies dead

Well goodbye good Halo games. Actavision is here to ruin yet another franchise! FUCK THE WORLD

Well goodbye Halo. Reach will be my last one. Not supporting Activision FOR ANY REASON

343 now > bunjie i expect to see bunjie employees flock to 343 after 1 year

TheJubJub57212 wrote:

Well goodbye Halo. Reach will be my last one. Not supporting Activision FOR ANY REASON

Dude Activision doesn't get any Halo rights at all. 343 Industries, (Former Bungie members), will be making Halo games for Xbox 360 only.

TheJubJub57212 wrote:

Well goodbye good Halo games. Actavision is here to ruin yet another franchise! FUCK THE WORLD

Activision can't touch Halo. Microsoft owns it.
But yeh, I'm really disappointed in Bungie.

343_Guilty_Spark wrote:

TheJubJub57212 wrote:

Well goodbye Halo. Reach will be my last one. Not supporting Activision FOR ANY REASON

Dude Activision doesn't get any Halo rights at all. 343 Industries, (Former Bungie members), will be making Halo games for Xbox 360 only.

i hope they make other stuff to but have halo as their main thing still bunjie doesnt exist now its a sad day in gaming

NOOOOOOOOOOOOOOO!!!

i hate activision but well will have to see if this will fuck bungie over. only time will tell. but hey wii still got halo.

well isnt that a punch in the pence!
why
halo warfare... uuh
call of halo.... uuuh
halo at war.....UUUUH!

this is fucken
terrible
not only does MS give bungie bigger budgets...
they adversite alot!!

wow i got no words 4 this, bad move by bungie i bet ps3 fanboys r having a party now

ps3 fans can be happy all they want. halo is still a 360 MS game. but im wondering what bungie will do. they havent made any other games this gen and last gen was ONI. only time will tell.

Wow...Damn Bungie sure knows how to piss people off, first Apple fanboys, then PC fanboys, now Xbox fanboys LOL! Nah, Activision will run Bungie down into the ground. What the fuck are they thinking?

Well, I guess Bungie has always been cocky, but now they've become greedy.