Microsoft announced that it has acquired Lionhead Studios, which will now develop for Xbox 360 and Windows exclusively as a part of Microsoft Game Studios.

The purchase has been rumored for months, and nearly confirmed forweeks. Known as a pioneer in the games industry for games such asPopulous and Syndicate, Molyneux continues to enjoy wide exposure andrecognition (he was granted an Order of the British Empire last year)though several high profile Lionhead games in recent years have failedto see retail performance living up to their substantial hype. One ofthe company's three internal studios was recently shut down.

The studio's biggest success story has probably been itspartnership with Microsoft Game Studios; 2004's Fable (Xbox) and itsfollowup Fable: The Lost Chapters (Xbox, PC) have sold over 2 millionunits and the original game was the highest selling non-sequel on Xboxin the year of its release. The game is mentioned frequently throughoutthe press release, and is almost sure to have further titles in theseries. Microsoft has also acquired the rights to other Lionheadfranchises such as Black & White and The Movies, though existingcontracts with other publishers will be honored.

"We could not be more excited about being part of MGS. They have longsupported our creative vision, and this teamwork resulted in the hugelysuccessful 'Fable' franchise," said Molyneux, managing director ofLionhead Studios. "This acquisition gives Lionhead the stability andopportunity to focus on creating world-class next-generation titles. Weare joining some of the most incredible game creators in the industry,the combined talent of which will truly take next-generation gaming toa new level."

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