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Bungie

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On June 19, 2000, on the ninth anniversary of Bungie's founding, Microsoft announced that it had acquired Bungie and that Bungie would become a part of the Microsoft Game Division. Halo would be developed as an exclusive first-person shooter title for the Xbox. The reasons for Bungie accepting Microsoft's offer were varied. Jones stated that "I don't remember the details exactly, it was all a blur. We'd been talking to people for years and years—before we even published Marathon, Activision made a serious offer. But the chance to work on Xbox—the chance to work with a company that took the games seriously. Before that we worried that we'd get bought by someone who just wanted Mac ports or didn't have a clue". Martin O'Donnell, who had joined Bungie as an employee ten days before the merger was announced, remembers that the stability of the Xbox as a development platform was not the only benefit. Shortly before Myth II's release, it was discovered versions of the game could erase a player's hard drive; the glitch led to a massive recall of the games right before they shipped, which cost Bungie nearly one million dollars. O'Donnell stated in a Bungie podcast that this recall created some financial uncertainty, although accepting the offer was not something Bungie "had to do". Seropian and Jones had refused to accept Microsoft's offer until the entire studio agreed to the buyout.

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