Last week, I failed to report on some rumors about Bungie leaving Microsoft. In my opinion, I didn’t see how this was possible since A. Microsoft owned Bungie and B. Why leave when you created one of the best video game franchises of all time. Either way, the rumors were somewhat true, as Microsoft has sent this press release out today.

Here are some of the important tidbits of the rather short press release… [2 extra quotes are from a press release on Bungie.net]

Microsoft Corp. today announced a plan for Bungie Studios, the developers of the “Halo^®” franchise, to embark on a path to become an independent company. Microsoft will retain an equity interest in Bungie, at the same time continuing its long-standing publishing agreement between Microsoft Game Studios and Bungie for the Microsoft-owned “Halo” intellectual property as well as other future properties developed by Bungie.

“This exciting evolution of our relationship with Microsoft will enable us to expand both creatively and organizationally in our mission to create world-class games,” said Harold Ryan, studio head for Bungie. “We will continue to develop with our primary focus on Microsoft^® platforms; we greatly value our mutually prosperous relationship with our publisher, Microsoft Game Studios; and we look forward to continuing that affiliation through ‘Halo’ and beyond.”

“Working with Microsoft was great for us, it allowed us to grow as a team and make the ambitious, blockbuster games we all wanted to work on.  And they will continue to be a great partner.  But Bungie is like a shark.  We have to keep moving to survive.  We have to continually test ourselves, or we might as well be dolphins.  Or manatees,” said Jason Jones, Bungie founder and partner.

Bungie’s management retained the services of Don Leeds, senior managing director of B-Hive Global, LLC, to assist in the structuring of the deal and negotiating on their behalf. Bungie will remain in Kirkland, Washington, and is always looking to hire excellent talent.

So what exactly does this all mean? Bungie now has the option to create games for any system that they want, and aren’t limited by Microsoft. At the same time, Microsoft still somewhat has stock in Bungie, so they will still profit off of any future Bungie title. Just like everyone else, I want to see how this plays out…