Halo: Combat Evolved Remake Was Developed For Free Exposure— And It Worked

The 2011 remake of Halo: Combat Evolved Anniversary was a significant milestone for then-independent studio Saber Interactive. Offering to develop the game for free, the studio's bold move paid off, leading to a remarkable journey from an indie start-up to a recognized name in the gaming industry.

Saber Interactive Offered To Do Halo For Free

A Huge Opportunity For An Independent Studio

In a candid interview with journalist Stephen Totilo for Game File, Saber Interactive's CEO and co-founder Matthew Karch shared the story behind their decision to pitch Microsoft for the chance to remaster the iconic first Halo game. Karch explained that during the pitch, he boldly stated that his studio would do it for free, simply because it was Halo.

The Xbox executive present was reportedly "shocked" by this offer, but Karch believed it was a strategic move for their company. At the time, Saber was a young, independent start-up, and working on such a monumental franchise was seen as a golden opportunity to gain market visibility. Karch emphasized the value of the project, saying, "It’s the biggest franchise in the world at the time. I said: ‘It’s like putting a Harvard diploma on your wall. Everyone in the world is going to want to work with me after they see that I’ve worked on this last Halo game, and it is going to open up doors. So I’ll suck it up and I’ll do it at a loss.'"

Despite proposing a low bid of $4 million at Microsoft's request, the contract's clauses ultimately meant that Saber received no royalties from the 2011 Xbox 360 release of Halo: Combat Evolved Anniversary.

From Relying On Publishers To Becoming One Themselves

Although the initial project was a financial loss, it paved the way for future opportunities. Microsoft later contracted Saber to contribute to Halo: The Master Chief Collection, working alongside other developers like Bungie and 343 Industries. Additionally, Saber was tasked with porting Halo: Combat Evolved Anniversary to the Xbox One. However, Microsoft delayed sending a contract for the port until just before the collection's release.

Karch refused to sign until Microsoft removed the royalty-killing clauses that had affected the previous royalties on the Xbox 360 version. After negotiations, Microsoft agreed, and Saber was compensated handsomely for their work on The Master Chief Collection, receiving tens of millions of dollars.

This substantial payout was crucial for Saber's growth. As Karch reflected, "We’ve watched other people make money on our work. Now we’re going to make money on our own," he said to partner and Saber COO Andrey Iones.

Saber Interactive Now

Following their successful collaboration with Microsoft, Saber Interactive expanded significantly. The company opened new studios in Spain, Sweden, and Belarus, and acquired other studios such as Binary Motion and New World Interactive. They also worked on various projects, including the Nintendo Switch port of The Witcher 3: Wild Hunt with CD Projekt Red and developed World War Z under their own banner.

In February 2020, Saber Interactive was acquired by the Embracer Group, becoming a direct subsidiary while maintaining autonomy. Under Embracer, Saber continued to grow, acquiring more subsidiaries and developing games like Evil Dead: The Game. However, due to financial constraints, Embracer sold Saber to Beacon Interactive, a company owned by Saber's CEO Karch, in a deal that allowed Saber to retain all its branded studios and IPs.

Despite the split from Embracer, CCO Tim Willits reassured fans via X (formerly Twitter) that work would continue as planned. Currently, Saber Interactive is actively developing several titles, including Warhammer 40,000: Space Marine 2 (released in September 2024), John Carpenter’s Toxic Commando, and Jurassic Park: Survival.