Newsflash:

Microsoft Game Studios Acquires Peter Molyneux's Lionhead Studios

Lionhead's hit franchise Fable® surpasses two million unit sales milestone.

Redmond , Wash.—Microsoft Game Studios (MGS) today announced it has purchased U.K.-based Lionhead Studios, one of the world's leading and most innovative videogame developers and creator of Fable®, the hit Xbox® and Windows® franchise.

Lionhead Studios will immediately begin creating content exclusively for the Xbox 360™ and Microsoft® Windows® platforms. The companies previously worked together on the popular roleplaying games Fable for Xbox and Fable®: The Lost Chapters™ for Xbox and Windows, which have collectively surpassed the two million global unit sales milestone, making Fable the best-selling role-playing franchise on the Xbox platform. Fable and Fable: The Lost Chapters enable players to make decisions that affect their character's skills, appearances, and morality and the world around them.

"At Microsoft Game Studios we have worked hard to become the best partner for the best creative talent in our industry, and this acquisition underscores our commitment to excellence," says Shane Kim, general manager of Microsoft Game Studios. "Peter Molyneux is one of the few true visionaries in our industry, and his joining us is incredibly important to the future of both interactive entertainment and MGS. Lionhead is a shining example of the innovative and creative talent that has delivered some of the most influential and unique games experiences to date, and I am honored to welcome Peter and the incredible people at Lionhead Studios."

"We could not be more excited about being part of MGS. They have long supported our creative vision, and this teamwork resulted in the hugely successful Fable franchise," says Molyneux, managing director of Lionhead Studios. "This acquisition gives Lionhead the stability and opportunity to focus on creating world-class next-generation titles. We are joining some of the most incredible game creators in the industry, the combined talent of which will truly take next-generation gaming to a new level."

With today's announcement, Lionhead Studios becomes the latest member of MGS, joining such prestigious and globally recognized game creators as Bungie Studios, Ensemble Studios, FASA Studio, and Rare® Ltd. on a team whose charter is to create exclusive entertainment experiences that differentiate Xbox 360 and Windows from other gaming platforms.

About Lionhead Studios
Lionhead Studios is based in Guildford, England, and was founded in 1997. The studio's first game, Black & White for PC, was released in 2001, and worldwide sales of it have topped two million copies. Fable for Xbox and Fable: The Lost Chapters for Xbox and Windows have collectively also sold more than two million copies worldwide, and the numbers continue to climb, making Fable one of the top-selling Xbox titles of all time. Fable: The Lost Chapters and two further titles, Black & White 2 and The Movies, were all released in the fall of 2005. Lionhead was backed by three venture capital funds—IDG Ventures Europe, Add Partners, and Ingenious Ventures. For more information about Lionhead Studios, visit http://www.lionhead.com.