According to gamespot news, microsoft has confirmed the purchase of Lionhead Studios with an undisclosed sum.Lionhead was best known for its Black and White and Fable series.

"We could not be more excited about being part of Microsoft Game Studios. They have long supported our creative vision, and this teamwork resulted in the hugely successful Fable franchise," said 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."

It has been an eventful year thus far for Lionhead Studios. The company was rumored to be the subject of a bidding war between Microsoft and Ubisoft earlier this year, had its console versions of The Movies canceled by Activision, and is currently believed to be working on only two games with a staff that‘s some 50 bodies lighter than it was a couple of months ago. We‘ll bring you more information on Lionhead Studios‘ upcoming games as soon as it becomes available.

About Lionhead:
In 1987 Peter Molyneux founded Bullfrog Productions, along with his then partner Les Edgar in Guildford, Surrey, England to develop an idea he had for a revolutionary new type of strategy game for home computers. This first game, Populous, went on to sell over 4 million copies. Molyneux�s follow-up designs included hits like Powermonger, Syndicate, Magic Carpet and Dungeon Keeper. Each sold in excess of 500,000 copies and firmly established Bullfrog as one of the most innovative game design studios in the world. Another Molyneux title, Theme Park sold over 3.5 million copies and became a sensation in Japan.

In 1995 Molyneux sold Bullfrog to the world�s largest computer games publisher, Electronic Arts. In early 1997 he announced he was leaving Bullfrog to set up a new venture with three other likeminded individuals. Mark Webley, a colleague from Bullfrog who had headed up Bullfrog�s highly efficient conversions department before producing, designing and programming the top selling Theme Hospital. Two other directors also joined Lionhead, Steve Jackson who had co founded Games Workshop and had a great deal of success with the Fighting Fantasy series of books and Tim Rance one of the Cities most highly regarded systems analysts......