IGN: How Much Did Activision's Deal With Bungie Cost?

Neither Activision nor Bungie would discuss specifics of yesterday's surprise 10-year publishing agreement. But to sign a developer with a pedigree like Bungie to a deal for one game would cost a pretty penny, let alone ten years worth. So how much coin did Activision have to pony up to land Bungie?

Wedbush Morgan Analyst Michael Pachter said the deal may have cost Activision as much as $100 million upfront, but suggested there's no reason to believe the publisher would need to fund Bungie's game development.

"Activision may be funding the game development, but Bungie is only 180 people. If they make $125,000 each per year (that's WAY too high, but it's a reasonable starting point for discussion), their overhead is $22,500,000 per year," Pachter told IGN. "Activision may have paid them five years of operating expense up front, but it doesn't make sense that the deal was negotiated in this manner."