Bungie was a video game developer working on their next project when Microsoft bought them in 2000. Halo: Combat Evolved, the game they were working on, turned into a launch title for Microsoft's Xbox console. Bungie and Microsoft never fit together very well. After the release of Halo 2, Bungie started trying to get better profit sharing for their next game, Halo 3. These discussions led to Bungie becoming independent from Microsoft in 2007. While Bungie was still had a contract to make new Halo games, Microsoft owned the franchise.[1][2][3][4] Xbox general manager Bonnie Ross said that her coworkers thought Halo was a dying franchise and looked at contracting an outside company to make new games.[5][6]: 21:45–23:00 Ross really liked the series, and she wanted a different approach.[6]: 26:15–27:05 Ross' pitch convinced Microsoft Game Studios general manager Shane Kim, and she was put in charge of a new internal Halo studio, 343 Industries. The studio was named after the Halo character 343 Guilty Spark.[3][7][8][9][10]
343 Industries started with roughly a dozen workers in late 2007.[6]: 28:22 Bungie employee Frank O'Connor helped with the transition. He quit Bungie to serve as 343 Industries' franchise director.[1][5] During the transition, 343 Industries worked with the company Starlight Runner to interview Bungie employees and put together a central story for the franchise. 343 Industries also worked with Bungie on their last Halo projects, Halo 3: ODST (2009) and Reach (2010).[6]: 30:50 [11][12] art director Kiki Wolfkill, who joined the team as a studio head.[1] During the transition, 343 Industries worked with the company Starlight Runner to interview Bungie staff and compile a centralized story bible for the universe. 343 Industries also worked with Bungie on their last Halo projects, Halo 3: ODST (2009) and Reach (2010).[6]: 30:50 [11][12]
