Redmond, Wash. - Microsoft on Friday announced plans to spin-off its Bungie Studios game development unit, creators of the "Halo" franchise, while retaining an undisclosed stake in the company.

While Microsoft will continue to publish "Halo" and other Bungie titles, the deal will enable Bungie to develop for platforms other than the Xbox 360.

Founded in 1991, Kirkland, Wash.-based Bungie has also created titles incuding "Myth" and "Marathon," but is best know for "Halo," which has sold over 14.8 million units worldwide to date.

The latest installment, "Halo 3," was launched on Sept. 25 and racked up over $300 million in sales in its first week out.

Microsoft acquired Bungie in 2000.

"Our collaboration with Bungie has resulted in 'Halo' becoming an enduring mainstream hit," said Shane Kim, corporate vice president of Microsoft Game Studios.

"While we are supporting Bungie's desire to return to its independent roots, we will continue to invest in our 'Halo' entertainment property with Bungie and other partners, such as Peter Jackson, on a new interactive series set in the 'Halo' universe. We look forward to great success with Bungie as our long-term relationship continues to evolve through 'Halo'-related titles and new IP created by Bungie."

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