The deal further strengthens the cadre of game designers brought into the Microsoft Game Studio fold to provide new content for the Xbox franchise.
Lionhead created the "Fable" game, which Microsoft called the best-selling role-playing game available for Xbox.
Lionhead founder Peter Molyneaux said in a news release that the acquisition was a welcome development for his company, which was formed in Guilford in 1997 with the backing of venture-capital firms.
"This acquisition gives Lionhead the stability and opportunity to focus on creating world-class next-generation titles," he said. "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."
Copyright 2006 by United Press International
