Microsoft buys games development Bungie Software

REDMOND: Software giant Microsoft Corporation said on Monday it bought Bungie Software Products Corp. for undisclosed terms in a move to add games for its personal computers and Xbox video game consoles.

Microsoft said it is gaining exclusive publishing and distribution rights to select titles of Bungie's computer and video games, including a sci-fi action epic dubbed "Halo." Bungie's development staff will become an independent development studio within the Microsoft Game Division, where Microsoft said it will play a key role in developing content for the Xbox platform.

Microsoft did not disclose financial details of the deal but according to the Wall Street Journal on Monday, some analysts have estimated the company paid between $20 million and $40 million for the closely-held Chicago company.

Microsoft said the deal includes buying a 19.9 percent Bungie stake from Take-Two Interactive Software Inc., a current distributor of Bungie-developed titles. Take-Two will in turn acquire all right, title and interest to certain Bungie game properties, including the "Myth" game franchise and the upcoming action game called "Oni."

The acquisition of Chicago-based Bungie follows Microsoft's acquisitions game makers FASA Interactive Technologies Inc. and Access Software Inc. last year. Shares of Microsoft closed at 72-9/16 on the Nasdaq on Friday, up 3/16 on the day. Stock of Take-Two closed at 12-5/8 on the Nasdaq, down 1/16 on the day.

(C) Reuters Limited 2000.