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May 7, 2009 1:17 PM PDT

Microsoft decides it needs a BigPark

by Ina Fried
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Updated 2:10 p.m., with additional details

Microsoft said on Thursday it intends to acquire BigPark, a Vancouver, B.C.-based game studio.

BigPark, which is made up of former Electronic Arts Canada and Distinctive Software executives, has been working on an Xbox-exclusive game over the past year.

Microsoft plans to buy BigPark, a company chaired by Don Mattrick (pictured above), who already serves as a senior VP in Microsoft's game unit.

(Credit: Microsoft)

"We believe BigPark has tremendous potential to create new properties and innovative gaming experiences for our platforms, one of which we're looking forward to showcasing at the E3 Expo in June," Microsoft game studios boss Phil Spencer said in a statement. The company did not disclose financial terms in its press release announcing the deal.

Among BigPark's founders is Don Mattrick, who joined Microsoft in July 2007 as senior VP of its interactive entertainment business, while continuing to serve as BigPark's chairman. Microsoft noted that Mattrick's investment and role at BigPark was known to the company when it hired him.

However, neither Mattrick's Microsoft biography nor the press release announcing his hiring mention BigPark.

Update: I asked Microsoft for more clarification on Mattrick's role in the deal.

"Don was not a participant in the negotiations with BigPark either in his capacity as SVP of (Microsoft's game business) or Chairman of BigPark," a Microsoft representative said in a statement. Microsoft added that Mattrick's ongoing role as chairman of BigPark was approved by the company, pursuant to its code of business conduct. "As Chairman, Don was not involved in the day to day management of the BigPark business," Microsoft said.

Microsoft maintains that it did not note Mattrick's role at BigPark when when he was hired at Microsoft because, "BigPark had not publicly launched as an organization." Mattrick is noted (though not his Microsoft affiliation) on BigPark's Web site. As for why his role at BigPark is not part of his Microsoft biography, Microsoft said "As Chairman, Don was not involved in the day to day management of the BigPark business, nor was he an employee of the company; Therefore, mention of Don's limited involvement in BigPark was not significant enough to be included in his biography."

As for its decision not to disclose the purchase price, Microsoft said: "BigPark is a small company and the acquisition is not material from a financial reporting perspective to Microsoft."

Microsoft said the company has 50 employees.

What was that old saying? Disclosure is the better part of valor. Something like that anyway.

Among the other topics Microsoft isn't discussing: just what that game is that BigPark is working on for the Xbox. A representative declined to discuss the genre or nature of the Xbox game under development, saying only that it would be revealed at E3.

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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by Inconnux May 7, 2009 2:00 PM PDT
But does Bigpark need Microsoft? Think carefully Bigpark, remember what Microsoft did to Ace and Ensemble (both profitable top tier development studios). If I was a Bigpark employee, I would be looking for another studio to work for.
Reply to this comment
by May 7, 2009 6:05 PM PDT
Hey now, don't cherry-pick your data. Microsoft also bought Bungie and helped create the most successful game franchise ever.
by Inconnux May 8, 2009 4:22 PM PDT
Bungie is now a private company. Microsoft doesn't own it anymore. They have been private since Oct 5 2007

http://en.wikipedia.org/wiki/Bungie
by ducttape36 May 11, 2009 9:14 AM PDT
but the first three halo games were created when they were owned by microsoft. the split after the third game was released.
by The_happy_switcher May 7, 2009 2:10 PM PDT
"Microsoft decides it needs a BigPark" Is this a typo? Shouldn't it say "Microsoft decides it needs a BigTOP?" --what with all the clowns running the company and all.
Reply to this comment
by Vegaman_Dan May 7, 2009 3:02 PM PDT
Oh that was hilarious! Quite an insightful pun indeed. You make me laugh, AppleRocks1963, with each and every post you make.

Perhaps you should apply to work for Microsoft as well, since your own clownish behavior would well qualify for the 'BigTOP' as well?

If the shoe fits... :)
by monkeyfun14 May 7, 2009 4:12 PM PDT
Speaking of the local circus is looking to add a troll exhibit maybe you should apply.
by kcotham May 7, 2009 5:56 PM PDT
@monkey
Maybe you want a new cell mate in your little cage then. You are the biggest troll on CNET. Just for once, I'd like to see one of these stories without your idiocy below it.
by Renegade Knight May 7, 2009 2:19 PM PDT
MS makes money on games sold on the Xbox regardless of who makes them. Why would they want to snap up the companies and stifle their innovation. Yes stifle. If MS were innovated they wouldn't need to buy the companies to begin wiht. When they become the new boss...do the math.
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by Vegaman_Dan May 7, 2009 3:03 PM PDT
I would suspect the exceedingly deep pockets and resources Microsoft has available would be attractive to a game developer. They may now be able to do something much more ambitious than they could otherwise afford.

I haven't heard of this company though- what have they produced previously?
by jtjt145 May 7, 2009 3:05 PM PDT
No matter which way you cut it - Micro$oft is on the slope down that hill ...
Reply to this comment
by royc May 7, 2009 3:49 PM PDT
Micro$oft is on the slope down that hill ...
_________________________________

Well, you know what they say.

But with Microsoft, it's the other way around.

When they go down they must go up, way up.
by shellcodes_coder May 7, 2009 5:43 PM PDT
Why don't they acquire EA instead?
Reply to this comment
by retroboy77 May 7, 2009 5:54 PM PDT
I like that Don Mattrick guy, I hope he's the new Xbox guy.
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by ex-MSFTer May 15, 2009 12:01 PM PDT
Gee, let's think about this for a sec - Phil Spencer, head of MGS, and quoted early in the article, reports up to Don Mattrick. He also has a pathetic signing authority amount, certainly not enough to purchase a company (first-hand experience here). If your boss owned a company and wanted to sell to your employer, and you owned the group doing the acquiring, would YOU be the one to say no? Sounds like a career-limiting move to me.

Don Mattrick HAD to be involved in this discussion in some form. And if he was, it's a direct conflict of interest. If he wasn't, he's not managing his business. So which is it, MS?

Bottom line, Microsoft attempted to sneak this one past the goalie by omitting relevant and important details in the press release. It unfortunately seems to fit, coming from this group -- you know, the ones that kill profitable products/studios so they can purchase companies in which they themselves have a stake.

Top notch, Microsoft. Top notch. And you wonder why the rank and file no longer trust the senior management team. The remaining MGS employees should be up in arms over this ? someone should ask for accountability at the next all-hands meeting. I for one am glad to be done with the mickey-mouse management group currently running Interactive Entertainment.
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About Beyond Binary

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft.


Beyond Binary is a look at how technology is changing our lives and the people behind all that life-changing stuff, with an extra emphasis on that which emanates from Redmond, Wash.

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