I heard that Microsoft bought Bungie. Is it true?

Yes, it's true.In the summer of 2000 it was announced that Microsoft would purchase the company formerly known as Bungie Software, Inc. and make it Bungie Studios, a part of Microsoft's gaming division under Ed Fries.

As part of the transaction, Take Two Interactive received all rights to the Myth and Oni franchises in return for the 19.9% of Bungie they had purchased in 1999. They also reportedly received the rights to produce two games using the Halo engine.

More information on the history of Bungie can be found at A Brief History of Bungie on their offical web site.

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