Mobile Halo developer sues Microsoft

In-Fusio sues Xbox maker for breach of contract, saying it refused to approve game designs while still demanding payment for exclusivity of license.

In 2005, French mobile game developer In-Fusio announced at the CTIA IT Wireless and Entertainment trade show that it would bring the sci-fi shooter franchise Halo to mobile phones as part of an exclusive three-year deal with publisher Microsoft.

More than a year after the initial agreement and with no Halo game available for mobile phones, In-Fusio filed suit against Microsoft in a Seattle court last month, accusing the publisher of breach of contract.

"Under the Agreement, In-Fusio's Halo programming designs are subject to Microsoft's approval, which cannot be unreasonably withheld," the suit reads. "Nevertheless, Microsoft has thwarted In-Fusio's efforts to develop Halo under the Agreement. Indeed, in the last 11 months, Microsoft has approved no fully-developed In-Fusio Halo game designs; ignoring and then refusing to accept In-Fusio's game design concepts with little or no explanation and leaving In-Fusio little basis to revise its concepts to obtain Microsoft's approval."

Microsoft approved the first project under the agreement, Halo Portal, an application through which users can download Halo ringtones and wallpapers to their mobile phones. However, when the company turned its efforts toward creating an actual Halo game for the mobile marketplace, it claims Microsoft stonewalled it, refusing to approve no fewer than four game design concepts between February and September of 2006 and not offering explanations for the rejections.

According to the suit, the original agreement called for In-Fusio to pay Microsoft guaranteed minimum royalties of $2 million, spread out in $500,000 payments between January 1, 2006, and June 1, 2008. After rejecting In-Fusio's designs, Microsoft allegedly agreed to delay the payment schedule "pending efforts to agree on acceptable Halo design concepts," the suit reads.

However, In-Fusio claims that last November Microsoft sent notice that it would terminate the contract unless In-Fusio made its delayed payment of $500,000 within 30 days. The developer believes Microsoft could not terminate the contract, stating that the publisher was already in breach of the agreement for unreasonably rejecting its game designs without explanation.

As a result, In-Fusio demands judgment that it retains the exclusive rights to Halo on mobile phones for an extended period to be determined at trial and that Microsoft has waived its right to review and approve In-Fusio's Halo products as a result of its bad faith refusal to approve the concepts. In-Fusio is also seeking a cumulative amount of no less than $10,075,000 in damages for breaches of contract and covenant of good faith, as well as legal fees.

In-Fusio has had a publishing relationship with Microsoft since 2004 and has previously published mobile versions of games like Midtown Madness 3, Zoo Tycoon 2, Age of Empires 2, Banjo-Kazooie, Sabre Wulf, and It's Mr. Pants.

A Microsoft representative declined to comment on the lawsuit.

281 Comments

  • Kno2morrow

    Posted Jul 31, 2007 9:02 am PT

    You guys are so cliche with your "M$ is a big, evil corporation." Pusi mi kurac! You're talking about a company that is losing *BILLIONS* in its game division every year & all you guys can do it whine?? They rejected it porbably because it sucked and the lousy Frenchies just got butt-hurt because their designs were crap. Of course MS wants to protect the franchise. Its only the most recognizable franchise in gaming right now. No big deal.. You're idiots, haters and misanthropes & you couldn't make a sound business decision if your lives depended on it. Have fun in your closet with your Playstations. Halo Nation 4Eva bebe!

  • _Sam_

    Posted Jan 14, 2007 1:55 pm PT

    Microsoft can easily bribe a jury

  • RonHack

    Posted Jan 6, 2007 12:05 am PT

    Once again, Microsoft is making friends in the software industry by demanding much for revealing little-to-nothing.

    If M$ really does want to protect "the Halo franchise", which I have many reasons to doubt, then why doesn't it communicate with In-Fusio better? Say, state why it doesn't like many of the game designs for mobile?

    Like Microsoft could do better?

  • dvdragon

    Posted Jan 5, 2007 11:18 pm PT

    MS is just protecting the Halo franchise. Maybe the game didn't meet their "Halo standards" and they'd rather have no Halo mobile game than a bad one.

  • LoWpS

    Posted Jan 4, 2007 12:50 pm PT

    Halo on mobile? no wonder ms didnt approve...

  • Lord_Bafford

    Posted Jan 4, 2007 8:34 am PT

    cool, another lawsuit to talk about..

  • YunalescaFFX

    Posted Jan 4, 2007 1:04 am PT

    LAWL! This is amusing!

  • wenbin09

    Posted Jan 3, 2007 10:46 pm PT

    another law suit again..

  • joejoe160

    Posted Jan 3, 2007 4:16 pm PT

    Halo is the best and In-Fusio should be paying. MS can't help it if the crap designs presented to them where not useful. Also, I am sure MS has gave them feedback- there are two sides to every story. All the haters out there kill me - MS is a company and companies want to make money. What if you started up a company and had a huge hold on the market, wouldn't you want to keep expanding and making more money? Would you do what all the haters want you to do and say ok I know we make alot of money as a company so here ABC company take 10% of the market and goodluck. That is such BS! All companies (BIG and small) want to have as many customers as possible and make as much money as possible.

    One last thing - the haters that always say "I hate the Halo series" and so on need to get a life. Halo is one of the greatest games out there, just like Mario.

  • Lab4lover666

    Posted Jan 3, 2007 4:09 pm PT

    Now that is just childish of Microsoft..

  • KamaKase

    Posted Jan 3, 2007 3:51 pm PT

    I think In-fusio is justified in it's annoyance.....but I can understand why Microsoft doesn't want to further sully the Halo brand.

  • patmacfad

    Posted Jan 3, 2007 3:30 pm PT

    Wait, what!? There was supposed to be a mobile Halo game? My God, that would have been horrible, watching the Master Chief solving crate puzzles.

  • EPaul

    Posted Jan 3, 2007 1:41 pm PT

    Go In fusio

  • kamicolo

    Posted Jan 3, 2007 1:12 pm PT

    i just can say good luck to infusio on that suit, it doesn't matter to me

  • fahad2mail

    Posted Jan 3, 2007 12:57 pm PT

    Microsoft dream much about Halo. In-Fusio have right about what they want.

  • SilV3RSix

    Posted Jan 3, 2007 11:54 am PT

    DJTOMMY812
    "Microsoft is getting greedy and thats gonna F them up in the end, causing nobody to want to work with them, therefor giving Sony the upper hand. first the movie now this, and soon more!"

    Actually its working the opposite way. In fact, Kaz Harai's 'slowness' allowed MSoft to offer 'generous terms' for Assassin's Creed and GTA: IV, amoung many others... If anything it's been Sony's greed in trying to bundle Blu Ray onto the strength of the Playstation name that is actually causing the most damage.

  • trj156

    Posted Jan 3, 2007 11:35 am PT

    i'd like to hear the game ideas before everyone says "infusio sux they just want money"

  • ZMasterX

    Posted Jan 3, 2007 11:18 am PT

    In-fusio should stop whining and let it go. All mobile games suck. There is no reason they should go to such extremes. The game would suck anyway. I don't even think that In-fusio wants the game, I think they want the money. They don't give a crap about Halo they just want Microsoft's money. In-fusio is just jealous that nobody gives a crap about them.

  • R3DN1N3

    Posted Jan 3, 2007 11:14 am PT

    matrixman2k
    these days MS is getting hammered left, right and center...Eeveryone wants a piece of them... --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Not really, I think you slept through the last 5 months because Sony was getting pretty beat up. Didn't they say they were gonna sell 1 million PS3.....yeah I thought so

  • Cablestein

    Posted Jan 3, 2007 11:12 am PT

    $10,075,000 may be a bit much but imagine the lawyers and court costs involved in sueing Microsoft. I'm in court myself now (for small claims) and basic lawyer fee's are like $200/hour Canadian... simply to TALK to them, let alone do anything else (like paperwork, research, attending meetings and sessions of the court).

    Also what if In-Fusio built up it's business around the fact that they were developing Halo on mobiles? What if they spent tons of money on expanding their studios and stuff (and they were willing to take a hit just to get a foothold on this awesome franchise).

    Think of any image damages that may have been made to In-Fusio. What if they had press releases, industry marketing and stuff that mentioned In-Fusio and Halo together? What if they had other deals and partnerships that came together only because they were now working on Halo/having-a-deeper-connection-with-Microsoft. Now it's all gone down the drain, practically.

    Also imagine how you would feel if you were In-Fusio, believing you were being wronged by Microsoft then next thing you know Microsoft comes around asking YOU for money. It's like double-pissed-offness. This can account for padding the sue amount as well. I would. Wouldn't you?

    Think about that kind of stuff and you can understand more why they went for 10 million. Even so, it does feel like a bit much, yes... but still. They are allowed to sue for whatever they want.

  • gt3killer

    Posted Jan 3, 2007 11:00 am PT

    I hope they get their money from MS.

  • chrisdojo

    Posted Jan 3, 2007 10:57 am PT

    what???? micro$oft do something to screw people over???

  • ert47

    Posted Jan 3, 2007 10:51 am PT

    What is up with you lot?

    1) Halo is overrated
    2) Mobile games are crap, we all know that
    3) In-Fusio may produce crap games, but in order to develop concepts for a game, you will need some sort of feedback, something that M$ isn't giving them, so M$ is in the wrong.
    4) Hell, everyone is suing each other, its the only way to get things done in this day & age.

  • SystemaKid

    Posted Jan 3, 2007 10:37 am PT

    Cell phone games suck no matter what.

  • The_Fell_One

    Posted Jan 3, 2007 10:35 am PT

    They still need to pay royalties for using Halo in their ringtone download app. But yeah... In my not-very-well-informed opinion, I think some sort of restitution is in order, but $10,075,00? That's a bit much. I hope they settle out of court for a much more reasonable price...

  • DarkSaber2k

    Posted Jan 3, 2007 10:30 am PT

    I couldn't give a tw@t about Halo, I hate the series. But I love the balls on these guys taking on 'The Almighty M' (That should please a few fanboys). Lets face it, you must believe you have a watertight case because MS will walk all over you if they suspect your speaking to your lawyers!

  • Col-Neil

    Posted Jan 3, 2007 10:29 am PT

    Why do people even bother making good games on mobiles its so stupid

  • grimdeath

    Posted Jan 3, 2007 10:22 am PT

    lol, pretty much every commet being made seems to concern peoples judgement of the game....not the actual story. if MS broke their contract did the other things In-Fusion stated then they should be sued, if they didnt want the game in the first place they shouldnt have gotten in contract with them in the first place.

  • kazuma334

    Posted Jan 3, 2007 10:11 am PT

    In-Fusio has got to be kidding themselves here. No one wants a crappy version of a great game on cell phones.

  • fel_rossi

    Posted Jan 3, 2007 10:06 am PT

    10,075,000? *Whistles* that is a lot of mullah. People need to stop suing every other person its getting old. nossa não entendi nada... do que o cara falou...

  • bigelf72

    Posted Jan 3, 2007 9:54 am PT

    2-d sidescrolling, no thnx.

  • jayme22

    Posted Jan 3, 2007 9:52 am PT

    Halo-phone no wonder microsoft rejected their ideas halo will not work on a phone unless it was released on nokia smartphones because they have at least some 3D ability

  • NeonNinja

    Posted Jan 3, 2007 9:49 am PT

    If I were MS I would have done the same thing about a Halo Mobile game, that would just bring shame to the series!

    And $10,075,000 for a mobile game? Gimme a break, if anything, they should just pay what ever money they recieved and be done with it. $10 mil for a mobile game, what the hell are people thinking these days?

  • okassar

    Posted Jan 3, 2007 9:35 am PT

    LOL.It seems that everyone wants to sew Microsoft expecting big money only because its giant(psh.....$10,000,000 for not making a cell phone game....). It was a wrong move for Microsoft,but really,they should be expected to pay the $2,000,000 they would have earned out of going with the contract,no more no less. Microsoft always wins cases like this though,they have good defense,otherwise,they would always get into crap like this and slowly die out.

  • hi_im_derek

    Posted Jan 3, 2007 9:30 am PT

    Shutup In-Fusio, nobody wants your crappy phone version of Halo.

  • titus124

    Posted Jan 3, 2007 9:27 am PT

    HAHHHHHHHH Shame M$

  • briph24

    Posted Jan 3, 2007 9:14 am PT

    games on cell phones suck, screw in-fusio, im gonna sue them for being frech.

  • slickr

    Posted Jan 3, 2007 9:11 am PT

    hah, overrated game and money-thirsty M$ they should be paying In-Fusio at least 10 millions in damages!

  • sneakthief81

    Posted Jan 3, 2007 8:52 am PT

    "covenant of good faith"--In-Fusio...he he he, what a bunch of whinny babies...cell phone games are crap anyways...

  • hussein_nahidh

    Posted Jan 3, 2007 8:50 am PT

    halo on mobile phone? oh ! that's sound damn ugly! lol

  • paradyme777

    Posted Jan 3, 2007 8:50 am PT

    10,075,000? *Whistles* that is a lot of mullah. People need to stop suing every other person its getting old.

  • F1sTDaCuffS

    Posted Jan 3, 2007 8:45 am PT

    overrated game anyways. plz, stop hyping up this hype machine.

  • lazerluke

    Posted Jan 3, 2007 8:42 am PT

    Sounds like these game designs really didn't cut the mustard. MS are right not to let this crap developer harm one of the greatest franchises of all time. Let them go and develope for the PSP. Sony will let them make any old crap for that platform. I should know I have got one!

  • imortiferus

    Posted Jan 3, 2007 8:33 am PT

    This is a good move for MS, most cell phones games stink. releasing a crappy version of Halo on mobiles would be unwise. I'm sure we will see both a cell phone game and the movie when the time and content is right.

  • natester10

    Posted Jan 3, 2007 8:21 am PT

    Well, I guess that It's Mr. Pants! didn't get too much money, so they want it back, so they blame M$.

  • DJTOMMY812

    Posted Jan 3, 2007 8:17 am PT

    Microsoft is getting greedy and thats gonna F them up in the end, causing nobody to want to work with them, therefor giving Sony the upper hand. first the movie now this, and soon more!

  • Solid-CELL

    Posted Jan 3, 2007 7:56 am PT

    i wouldnt really play a cell phone game...not for me

  • peeweeshift

    Posted Jan 3, 2007 7:55 am PT

    in-fusio had a horrible game design. they had a small demo released that was a beta test that could be run on a pc and i tried it. it was garbage. you couldn't shoot while crouched and it was like a stealth game because you had to avoid the grunts seeing you. all the guns were unbalanced and you found yourself only using the assualt rifle. the sniper zoom just made you look a screen in front of you(its hard to explain but if you think of super mario world you might get an idea of what i'm saying) The first level starts of by landing in a city and having to move forward. there are marines who fight with you but they don't even follow you. And at the end of the first level you had to a fight a giant blue elite as a boss. There was a scorpion that you could use by pressing [ctrl] and it took like 5 TANK SHOTS to kill the elite. the second level had flood and i wasn't able to beat it because there was no medkits in the second level for some reason. I know this soudns fake but i will post some screens and if it's allowed i'll post a link to the download(if it is still there) on my blog. Halo zero looked similar to this and halo zero was actually more fun to play which explains why MS didn't want to pay in-fusio. however i liked in-fusio's graphics and sound effects better.

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