Microsoft buys Lionhead games studio

By Steve Malone

Posted on 7 Apr 2006 at 10:50

Microsoft has bought the British games studio Lionhead headed by the legendary games developer Peter Molyneux. The studio will now concentrate solely on producing games for the Xbox and Windows platforms.

The two companies have previously collaborated to create the popular role-playing games 'Fable' for Xbox and 'Fable: The Lost Chapters' for Xbox and Windows, which together have sold over two millions around the world, making 'Fable' the best-selling role-playing franchise on the Xbox platform.

In a touch typical of Molyneux's style the game players can make decisions that affect their character's skills, appearances, morality and the world around them.

Lionhead, based in Guildford, Surrey, was founded by Molyneux in 1997. Its first game 'Black & White' was revolutionary for its time in allowing players to be either good or evil. The game sold over two million copies world wide. Molyneux made his name with Populous said to be the first 'God game' and which founded a whole new genre.

The acquisition of Lionhead underscores Microsoft's commitment to the Japanese market. The Xbox series has had a tough time making headway in a market which is dominated by the local heroes Sony and Nintendo.

However, the Japanese are particularly fond of role playing games which is a speciality of Lionhead. Americans, by contrast, apparently prefer first person shooters. By offering best of breed RPG franchises solely on Xbox and Windows, Microsoft will hope to lure away some of the Japanese gamers who make up the second biggest market in the world.