Microsoft Acquires Lionhead

NEW YORK (Reuters) – Microsoft Corp. on Thursday said its in-house video game studio acquired Lionhead Studios, the British developer started by the famed game maker Peter Molyneux. Most recently, Lionhead was responsible for “Fable.” Released on Microsoft’s
Xbox platform, the game has sold more than 2 million units worldwide.

It’s hard to tell right now whether this hurts Lionhead more than anything. On one hand though, it may give Molyneux more ‘time’ or freedom to pump out some great games. You can read the release at Yahoo.com.