Grench writes "The BBC has an article on Microsoft's purchase of Lionhead Studios. They focus in particular on Peter Molyneux, and the kind of talents and expertise that he can bring to Microsoft's future gaming efforts. A sequel to Fable was mentioned as a probable endeavor." From the article: "Some of the giants of the games industry, such as Electronic Arts and Ubisoft, were reported to have been interested in acquiring Lionhead. But Microsoft has emerged as the victor, adding the studio to its roster of British gaming talent. In 2002, it acquired developers Rare in a $375m deal."
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