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Gaming veteran Sandy Petersen, renowned for his work on classics like Doom, recently reignited a long-standing controversy on X (formerly Twitter) regarding the abrupt closure of Ensemble Studios. Petersen, who served as a level designer at Ensemble in the 2000s, squarely placed the blame on former Xbox chief Don Mattrick, asserting that the highly anticipated Halo MMO, codenamed ‘Titan,’ was intentionally scuttled to protect Mattrick’s short-term, profit-based stock bonus.
According to Petersen, Ensemble Studios initiated development on a massive multiplayer online game set in the vast Halo universe in 2008. Dubbed ‘Titan,’ this ambitious project was designed to explore a period tens of thousands of years before the Halo rings were activated, wiping out sentient life across the galaxy. Petersen himself played a crucial role in meticulously crafting the setting and intricate lore for this primeval Halo era. He claims that ‘Titan’ was well into an advanced stage of development when it was ultimately canceled, a detail corroborated by previous accounts and an array of leaked screenshots and in-game models from the project.
The financial prospects for ‘Titan’ were reportedly immense. Petersen stated that the most conservative estimates from both Ensemble and Microsoft projected a total income of $1.1 billion. To provide context, the entire Halo franchise, spanning two decades, had generated approximately $5 billion in game sales revenue by 2021. The cancellation of a project with such staggering potential profit raises significant questions about the underlying motives.
While Petersen’s timeline suggests ‘Titan’ began development in 2008, earlier reports on the game’s history indicate its inception might have been around 2004, with its eventual cancellation occurring in mid-2007. This earlier date aligns closely with Don Mattrick’s ascent to head of Xbox in July 2007, adding another intriguing layer to the unfolding narrative.
Petersen’s central accusation focuses directly on Mattrick’s personal financial incentives. “It was all brought to naught when Don Mattrick realized that his stock bonus was based on the income MS had from games in three years,” Petersen explained. Given that ‘Titan’ was projected to require an estimated three and a half years to reach completion, its continued development would have extended beyond Mattrick’s bonus qualification period, incurring substantial studio costs without immediate profit generation. Petersen, pulling no punches, critically remarked, “Don started as an EA hatchet man so what would you expect?”
The shutdown of Ensemble Studios proved particularly perplexing given its consistent track record of success. The studio, celebrated for its ‘Age of Empires’ series, rarely sold fewer than three million copies of any title it released. Both Petersen and former Ensemble technology director Dave Pottinger highlighted the studio’s profitability, making its closure seem illogical from a long-term business health perspective for Xbox. Pottinger, in a 2008 interview, publicly expressed difficulty in reconciling the decision with the best interests of shareholders.
Don Mattrick’s leadership at Xbox is generally not remembered favorably by the gaming community. His tenure saw significant investment in initiatives like Kinect and a dashboard redesign, alongside the Xbox One’s initial marketing push as an always-online media center. Many fans believe these strategies alienated Xbox’s established audience and contributed to Sony’s commanding lead in subsequent console generations. Petersen’s allegations now paint a picture of internal decisions potentially driven by personal financial gain, further deepening the criticism surrounding Mattrick’s legacy.
While Petersen has not publicly presented concrete evidence detailing Mattrick’s specific financial calculations, his recent statements on social media and previous discussions, such as on the ‘Bored With Nelly’ YouTube show, continue to fuel debate. This account offers a stark glimpse into the often-opaque decision-making processes within the video game industry, especially when highly promising and lucrative projects are abruptly halted.