Microsoft Game Studios today announced that it has acquired Peter Molyneux's Lionhead Studios, apparently Lionhead will now create content exclusivley for Xbox 360 and Windows platforms. Lionhead join Bungie, Rare, FASA Studio and Ensemble Studios in what is becoming quite a stable of talent decicated the Microsoft's platforms.

"We could not be more excited about being part of MGS. 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."