According to insider sources who contacted a SeattlePI blogger, Microsoft have stabbed yet another one of their partners in the back.

Bungie, the software company bought by Microsoft to develop games for the Xbox 360 (presumably because Microsoft didn't know how to) have allegedly been unceremoniously kicked out into the street, after having been striped bare of the rights to the Halo franchise (and probably their shirts, too).

After a wave of hype for Halo 3 that put even the (admittedly miserable) Vista launch to shame, it seems that the Redmond Giant has rewarded the game's actual creator with a vicious mugging.

UPDATE!!! ... this has now been officially confirmed by Bungie who, in order to save face, are spinning it as an "exciting evolution of our relationship with Microsoft". LOL! Yeah, OK. Being mugged for your IP, then kicked out into the street sounds really exciting, I'm sure.

Here's the full text of the Email:

So heres my big secret. You should google Bungie + Microsoft + separation this week.

You know that big ol BILLION dollar franchise Bungie has created for Microsoft, to show their appreciate Microsoft is letting Bungie leave. Of course Microsoft gets to keep all rights to the Halo franchise, but as today Bungie no longer part of Microsoft. Ask anyone who works there to search the global address book, they're no longer in there. Microsoft was supposed to release the press release today but if they wait till the 10/6 the impact wont effect the quarterly results. However today is the actual official date and the day the NDAs expire, however you still didn't hear this from me.

Apparently MS just wants Bungie to make Halo for the rest of their natural days, and Bungie doesn't like how MS is constantly trying to "handle" everything they do; the way they market their games, the way they interact with their fans (basically the fact that they do appreciate their fans), and how stingie they are with the profits (comparable to the rest of the industry). So as of today they are their own independent entity. They'll probably make Halo 4 for Microsoft, however hey are also free to create new intellectual properties for whatever system they want. (Even though they prefer the xbox platform)

What a way to say thank you.