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Bungie's next project started as an update of ''Pathways'' but evolved into a science fiction shooter game, [[Marathon (video game)|''Marathon'']]. The game included state-of-the-art graphics, network multiplayer, and voice support, and won a number of awards on release in 1994.<ref name="gamesradar-history of halo"/> Jones recalled that he was surprised anyone ever completed the game and sought to atone for some of its shortcomings with its sequel, ''[[Marathon 2: Durandal]]'',<ref name="bungie-jones interviewed by you">{{cite web|author=Jarrard, Brian|date=2001-12-18|url=http://www.bungie.net/news/content.aspx?type=topnews&cid=6|title=Jason Jones Interviewed By You|publisher=[[Bungie]]|accessdate=2010-02-24}}</ref> which was also released for Windows PCs. The ''Marathon'' series was followed by a series of real-time strategy games, starting with ''[[Myth: The Fallen Lords]]'' in 1996.<ref name="gamesradar-history of halo"/>
Bungie continued to expand, and in 1997 work began on a new project, codenamed ''Blam!''<ref name="gamesradar-history of halo"/> (Jones had changed the name from ''Monkey Nuts'' because he could not bring himself to tell his mother about the new game under that title.)<ref>{{cite book |last= Trautmann|first=Eric|title=The Art of Halo|year= 2004|publisher= Del Ray Publishing|___location=New York |isbn=0-345-47586-0|page=ix}}</ref> ''Blam!'' evolved from a real-time strategy game to a third-person shooter to a [[first-person shooter]] called ''[[Halo: Combat Evolved]]''. Jones role in development was unlike ''Marathon'' and ''Myth'', where Jones was involved in developing more than half the levels and much to most of the story. Instead, he was the project lead<ref name="interview">{{cite web|url=http://www.next-gen.biz/features/hot-100-game-developers-2006|archive-url=https://archive.is/20130115042648/http://www.next-gen.biz/features/hot-100-game-developers-2006|dead-url=yes|archive-date=2013-01-15|title=The Hot 100 Game Developers of 2006|work=Next Generation Magazine|date=2006-03-18|accessdate=2008-03-01|first=Next Gen|last=Staff
In 2000, [[Microsoft]] acquired Bungie, moving the team from Chicago to Washington State. Jones recalled that the buyout was a "blur [...] We'd been talking to people for years and years—before we even published ''Marathon'', [[Activision]] made a serious offer [to buy us]. But the chance to work on [the Microsoft [[Xbox (console)|Xbox]] console]—the chance to work with a company that took the games seriously. Before that we worried that we'd get bought by someone who just wanted Mac ports or didn't have a clue."<ref name="history of bungie billion dollar donut">{{cite web|author=Bungie |url=http://www.bungie.net/inside/history.aspx?link=oni |title=Billion Dollar Donut: Halo CE |publisher=[[Bungie]] |accessdate=2007-10-08 |deadurl=yes |archiveurl=https://web.archive.org/web/20080426200333/http://www.bungie.net/inside/history.aspx?link=oni |archivedate=April 26, 2008 }}</ref> Around the same time, a glitch in versions of ''Myth II'' was found to entirely erase a player's hard drive; this led to a massive recall of the games right before they shipped, costing Bungie nearly one million dollars.<ref name="history of bungie billion dollar donut"/><ref name="game icons">{{cite video|people=Bungie |date=2004-09-12 |title=Icons: Bungie |url=http://www.wraith-ops.com/hbomirror/Bungie_Icons.mov |format=[[.MOV|MOV]] |medium= |publisher=[[G4 (U.S. TV channel)|G4TV]] |accessdate=2008-03-14 |time= |quote= |deadurl=yes |archiveurl=https://web.archive.org/web/20080411182932/http://www.wraith-ops.com/hbomirror/Bungie_Icons.mov |archivedate=April 11, 2008 }}</ref> Composer [[Martin O'Donnell]] said that this recall created financial uncertainty in the studio, though accepting the offer was not something "Bungie had to do."<ref name="bungie podcast- odonnell">{{cite web|author=O'Connor, Frank |author2=Smith, Luke | authorlink2=Luke Smith (writer) |date=2007-12-12 |title=Official Bungie Podcast 12/12/2007: With Martin O'Donnell |url=http://www.bungie.net/Inside/content.aspx?link=bungiepodcasttime |publisher=[[Bungie]] |accessdate=2008-02-28 |time= |quote= |deadurl=yes |archiveurl=https://web.archive.org/web/20080331164029/http://www.bungie.net/Inside/content.aspx?link=bungiepodcasttime |archivedate=March 31, 2008 }}</ref> Jones and Seropian refused to accept Microsoft's offer until the entire studio agreed to the buyout.<ref name="game icons"/>
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