GameDaily BIZ: How long would you say that this deal has been in the works? At what point did Bungie decide it had to become independent again?

Frank O'Connor: We've always been independent minded and spirited. We've even had a separate office space and a remarkably loose dress code. Pants optional. About a year ago, we began negotiations to make all those aspects more official.

BIZ: How much does the financial aspect come into play with this move? I'd imagine that as the creators of Halo and as an independent studio, Bungie would be in a better position to negotiate contracts with Microsoft so that the games' success don't simply bankroll MS stockholders.

FO: It works out great for both parties. We get a slightly better deal, we get to loosen up and make the next big thing and Microsoft gets to publish more hopefully great Bungie stuff on Xbox 360. It sounds cheesy, but it really is a win-win.

BIZ: Has Bungie grown tired of the Halo universe? Will there be a Halo 4 from Bungie?

FO: No. We love the Halo universe and still have projects going on within it, like the Peter Jackson collaboration and dowloadable content. If we ever return to the Halo universe, I'm sure we'd have cool stories to tell. The universe is, after all, infinite.

BIZ: With the Halo trilogy done and Ensemble already doing Halo Wars, was this move back into independence all part of a long term plan?

FO: It's more of an evolution of our independent spirit. Microsoft sees the benefit to itself, us and the 360.

BIZ: Now that Bungie has gone indie, does it retail all the IP it established before the acquisition (Myth, Oni, Marathon, etc)?

FO: We have Marathon. Microsoft owns Halo, and Take2 I believe, owns Myth and Oni. But we're also all about new ideas.

BIZ: Bungie said that it was a mutual decision with MS to allow the company to create outside of the MS system. Given the money around development, marketing and talent, what was hindering the creative development?

FO: Very little other than process. We were a part of MS and that meant adhering to their hiring policies, infrastructure and penchant for Khaki shorts and golf shirts. We still get the benefits of working closely with the platform team, the Xbox Live guys and the amazing talent at the mothership, but that slight loosening of reins will go a long way. Watch us gallop.

BIZ: Does the new Bungie like MMO games (something that MS can't seem to figure out) or is the team looking at creating new games in other genres besides FPS?

FO: We like all sorts of games, from RPGs to Irritating Stick. Look it up.

BIZ: Is it possible that the Halo universe or Bungie's future games could appear on other consoles now?

FO: Right now we're concentrating on the Xbox 360. Which we adore.

BIZ: What are the details of this long-term relationship with MS? Do they get first crack at publishing any new games before you shop around to other publishers? And how many years is "long-term?"

FO: We're not discussing the details of the relationship, suffice to say that it's healthy and ongoing. In reality, very little will change outwardly.

BIZ: Since Bungie used to create Mac games, is there interest in doing that again, or how about games for the iPod/iPhone?

FO: Halo CE came out for Mac as part of a deal with Microsoft. And MS publishes a lot of Mac software. But again, we're focused on the 360 right now.

BIZ: Can you give us any hints on what Bungie's working on next?

FO: Downloadable content, the Peter Jackson project and plenty of skunkworks ideas.

BIZ: Anything you'd like to add?

FO: Honestly, this is going to be great for us, great for 360 and great for gamers.

BIZ: Thanks for your time.