I'm very certain that Bungie Aerospace is alive and well. Afterall, [url=http://halo.bungie.net/Forums/posts.aspx?postID=76597070&postRepeater1-p=2#76597177]Enormous Corgi[/url] linked someone to the application page for Bungie Aerospace back on December 30th, if the program was truly dead and abandoned, why would he do that?
What you folks need to understand is that Independent Development is not a pretty process. It can take several failed game concepts before you find something that's good enough to push to completion, and even then it can be a slow and arduous process. It would be nice if we had a bit more information about how many different groups are working with Bungie Aerospace at the moment, but it appears to be alive and relevant still.
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Well that's refreshing to hear, you're the first person on this thread to have some positive news about the program. I really do hope they continue this, I quite enjoyed Crimson Steam Pirates and I definitely see the value that Bungie can bring to any independent game developer.
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As a Computer Scientist, I certainly hope they keep it around, it would be the coolest way to get experience after College.