The Halo series has made its name on the first-person shooter genre, but Microsoft has branched out occasionally with projects like Halo Wars and the canceled Halo MMO. The latter was revealed as canceled before it was even announced, but why?

"There was obviously a lot of turmoil within Microsoft at that time," Patrick Hudson, formerly of Ensemble Studios, claims.

"It wasn't long after that when Bungie spun itself out of Microsoft and what was going to become of the Halo universe within Microsoft was unknown. It was a big production, it would have been a pretty expensive bet. Microsoft was going a different direction," Hudson told Game Informer.

We've heard word previously of the costs involved in Microsoft's decision. The timing with Bungie adds an interesting wrinkle, though. It seems that after the studio declared its independence, Microsoft wasn't quite sure what to make of Halo. The franchise was ultimately passed on to 343 Industries, which is working on Halo 4.