Tech Shout!

The rumor saying that Microsoft would buy Lionhead Studios has been circulating for week but now its official.

Microsoft Game Studio (MGS) has announced that it has bought game developer Lionhead Studios, the makers of Black & White and Fable. This will allow Microsoft to have exclusive rights to all future games developed by the company, with Peter Molyneux being the Creative Head behind of Black & White and Fable games.

Peter Molyneux’s company is now under the protecting umbrella of the Redmond giant who will channel the team’s efforts into creating more successful titles for Xbox 360 and Windows.

Microsoft and Lionhead Studios worked together to create “Fable” for Xbox and “Fable: The Lost Chapters” for Xbox and Windows, titles which together sold more than 2 million copies.

With this announcement, Lionhead becomes the newest member of Microsoft Game Studios, joining famous game developers as Rare, Ensemble Studios, FASA Studio and Bungie Studios on a team whose character is to create exclusive entertainment experiences that set apart Xbox 360 and Windows from other gaming platforms.

Peter Molyneux, the founder of Lionhead Studios, said the deal would give Lionhead the stability and opportunity to focus on creating world-class next-generation game titles. Lionhead Studios is joining some of the most incredible game creators in the gaming industry, the collective talent of which will truly take next-generation gaming to a new level.

Molyneux acknowledged that they are very excited about being part of Microsoft Game Studios. Microsoft has long supported their creative vision, and this teamwork resulting in the extremely successful Fable franchise.

Lionhead, hasn’t officially announced any next-gen titles for Xbox 360, but the developer is presumed to be working on a sequel to Fable.

None of the financial terms of the deal have been disclosed.