If you’ve ever been curious about how Saber Interactive came to take on the monumental task of remastering one of the most iconic shooters in gaming history, the story shared by CEO Matthew Karch with journalist Stephen Totilo offers a fascinating glimpse into the twists and turns of the business world. Karch’s recounting, featured in Totilo’s Game File newsletter, reveals a series of unexpected maneuvers that led to Saber’s involvement with Halo: Combat Evolved Anniversary.
A Bold Proposition
Prior to their foray into the Halo universe, Saber was navigating a modest existence, developing titles like Will Rock and Timeshift. However, fortune smiled upon them when they received an invitation to pitch for the Halo remaster. In a move that could only be described as audacious, Karch proposed to Microsoft that Saber would undertake the remaster at no cost. This bold strategy was not without its caveats, as Karch had an understanding that Saber would earn royalties once Halo Anniversary launched on the Xbox 360 in 2011.
Yet, as the story unfolds, it became clear that the path was not as straightforward as anticipated. Microsoft inserted “certain clauses” into the contract that effectively stripped Saber of its royalty rights. Undeterred, Saber went on to remaster Halo 2 and was later tasked with porting Halo: Combat Evolved Anniversary to Xbox One as part of the Master Chief Collection.
A Strategic Standoff
As the timeline progressed, a curious twist emerged. Microsoft failed to provide a contract for the port work until just before the release of The Master Chief Collection. Seizing this moment, Karch took a stand, refusing to sign the contract unless Microsoft reconsidered the royalty situation regarding Halo: Anniversary. Remarkably, Microsoft acquiesced, leading to Saber finally receiving royalties from their earlier efforts, which Karch estimates reached into the tens of millions of dollars.
In a candid moment, Karch expressed to his partner Andrey Iones, “We’ve watched other people make money on our work. Now we’re going to make money on our own.” This turn of events illustrates the unpredictable nature of business negotiations, where a lowball bid can lead to unexpected outcomes and financial triumphs.
The Rollercoaster of Business
However, Saber’s journey did not end there. The company was acquired by Embracer Group in 2020, only to be sold again in 2024 following a tumultuous period marked by significant layoffs and canceled projects. Despite these challenges, Saber has managed to flourish independently, recently launching Warhammer 40,000: Space Marine 2, which has garnered considerable acclaim.
Through a combination of daring decisions, strategic negotiations, and a bit of luck, Saber Interactive has navigated the complexities of the gaming industry, emerging stronger and more resilient in the face of adversity.