I think I can help clarify the situation!
When you say "1st party developers", you're referring to companies that are directly owned or controlled by Microsoft (MS), such as Microsoft Studios (now known as Xbox Game Studios), which develops games exclusively for Microsoft's platforms.
On the other hand, "2nd party developers" are companies that are partnered with Microsoft, but are not owned or controlled by them. They develop games for Microsoft's platforms, but have their own intellectual property and creative direction.
In the case of Bungie, they were indeed a 2nd party developer, meaning they were a partner of Microsoft's, but not owned or controlled by them. Bungie developed games for Microsoft's platforms, such as Halo, but had their own creative direction and intellectual property.
Sega, on the other hand, is a separate company that was once a major competitor to Microsoft in the gaming industry. However, they have since shifted their focus to other areas, such as mobile gaming and esports.
So, to answer your question, I think I understand what you're saying now!
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