Rumor mill: Microsoft letting Bungie go free

The Intertubes are all a-buzz today, especially the video game corner, about a rumor that Microsoft has made the decision to let Halo developer Bungie become an independent studio again.

This is interesting timing, given that Halo 3 was just released last week, to largely enthusiastic reviews and huge commercial success, and that there are still additional Halo properties to come, including a project being produced by Lord of the Rings impresario Peter Jackson.

Still, according to the rumors, first reported by 8bitJoystick, Microsoft would keep hold of the Halo property, and would simply allow Bungie--which was solo before being bought by Microsoft--to produce independent projects again.

The official word, meanwhile, from Microsoft is that it "has no announcement planned," reports 1Up.

We don't have any additional direct insight to report on this, but will check back in the moment we do.