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."

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NateNater2948d ago

$100 million up front? Pssshhh That's just pocket change :-P

Cevapi882948d ago

i see it being much more than $100 million...we have seen smaller companies "bought out"(i know that this is a 10 year deal only) for way more but some havent been around for 10 years after a deal like that is made

Darkstorn2948d ago

$100 million isn't pocket change if you can get Bungie for that much...

The Iron Sheik2948d ago

It cost all the money that was owed to Infinity Ward.

kaveti66162948d ago

Didn't Microsoft have some agreement with Bungie where Microsoft got first dibs on publishing rights to whatever Bungie developed? What does it mean now that Activision has a publishing contract with Bungie?

Foxgod2948d ago (Edited 2948d ago )

Only Halo stuff.
MS let Bungie go two years ago, and severed any contractual exclusivity besides Halo with Bungie.

Now that Bungie is done with Halo, theres no exclusive contracts as far as known.
All eyes are on 343 now, i wonder if they are going to produce the Halo that rivals Gears in gfx.
Halo could finally become the perfect game, as the gfx are the only thing in the series that need some improving.

LittleBigSackBoy2948d ago (Edited 2948d ago )

Halo's graphics don't need improving any more, the reach Beta looks great.

edit: You never know...It might look even better when it's released. But it's still the best looking Halo yet.

Foxgod2948d ago

I agree it looks great.
But its still not a graphics crown contender.
A top series like Halo deserves to have the graphics crown every now and then.

Mista T2948d ago

I bet Kotick is salivating from the mouth as we speak

Persistantthug2948d ago

This is the internet, right?


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