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===Early years=== Word about Lionhead began spreading quickly. Within the first month, companies including [[Sega]], [[Nintendo]], [[Eidos Interactive|Eidos]], GTI, and [[LEGO GROUP|Lego]] had arranged meetings. One day, "a major Japanese console manufacturer" had come to present plans for a "next generation console", but by then, Lionhead's first game had already been committed.<ref name="LDOlympic"/> By the end of July, Lionhead had signed a one-game contract with Electronic Arts.<ref name="LDOlympic">{{cite magazine|magazine=[[PC Zone]]|publisher=[[Dennis Publishing]]|issn=0967-8220|page=62|issue=62|date=April 1998|title=The Lionhead Diaries: Part 3 The Olympic Games|location=London|department=The Lionhead Diaries|author=Steve Jackson}}</ref> The studio was initially run out of Molyneux's mansion in [[Elstead]],<ref name="eg history"/> before relocating to the [[University of Surrey]] Research Park in 1998.<ref name="LDHome">{{cite magazine|magazine=[[PC Zone]]|publisher=[[Dennis Publishing]]|issn=0967-8220|page=168|issue=66|date=August 1998|title=Part 7:Home Sweet Home|location=London|department=The Lionhead Diaries|author=Steve Jackson}}</ref> According to Jackson, it was "a mere stone's throw from Bullfrog's old lily pad on the very same estate".<ref name="LDHome"/> For the staff who had come from Bullfrog, it was "a little like coming home".<ref>{{cite book|author1=James Leach|author2=Christian Bravery|title=The Making of Black & White|date=2001|publisher=Prima Games|isbn=978-0-7615-3625-3|page=20}}</ref> Six companies were competing for a space, and Lionhead won due to Molyneux and Bullfrog's reputation.<ref name="LDHome"/> Lionhead had originally intended to make their first public appearance at the [[E3]] trade show in May 1997. This was cancelled at the last minute because there was not yet any deal with Electronic Arts, and there was the possibility of not being able to discuss Lionhead. The debut was made in September at the [[European Computer Trade Show]] instead.<ref name="LDOlympic"/> According to Jackson, "Everyone" was interested in Lionhead: journalists from many major European magazines frequently turned up at Lionhead's suite.<ref name="LDOlympic"/> By August 1998, after the studio placed a job advertisement in ''[[Edge (magazine)|Edge]]'' which received over 100 applications, [[Russell Shaw (composer)|Russell Shaw]] had been hired as Head of Music.<ref name="LDHome"/> Lionhead's first title was ''[[Black & White (video game)|Black & White]]'', which was published by Electronic Arts under terms of Molyneux's severance package from departing Bullfrog.<ref name="eg history"/> It was released in 2001 to widespread critical acclaim.<ref name="LHProfile">{{cite magazine|magazine=[[GamesTM]]|issue=80|page=166|title=Developer Profile Lionhead Studios|issn=1478-5889|publisher=[[Imagine Publishing]]}}</ref> It won [[BAFTA Award]]s for Interactivity and Moving Images in 2001,<ref>{{cite web|title=Interactive Interactivity in 2001|url=http://awards.bafta.org/award/2001/interactive/interactivity|website=BAFTA|access-date=27 January 2018|archive-url=https://web.archive.org/web/20180127202520/http://awards.bafta.org/award/2001/interactive/interactivity|archive-date=27 January 2018|url-status=live}}</ref><ref>{{cite web|title=Interactive Moving Images in 2001|url=http://awards.bafta.org/award/2001/interactive/moving-images|website=BAFTA|access-date=27 January 2018|archive-url=https://web.archive.org/web/20180127202531/http://awards.bafta.org/award/2001/interactive/moving-images|archive-date=27 January 2018|url-status=live}}</ref> and [[Academy of Interactive Arts & Sciences]] awards for Computer Innovation and Computer Game of the Year the following year.<ref>{{cite web|title=Computer Innovation|url=http://www.interactive.org/awards/award_category_details.asp?idAward=2002&idGameAwardType=28|website=Academy of Interactive Arts & Science|access-date=27 January 2018|archive-url=https://web.archive.org/web/20180127143302/http://www.interactive.org/awards/award_category_details.asp?idAward=2002&idGameAwardType=28|archive-date=27 January 2018|url-status=live}}</ref><ref>{{cite web|title=Computer Game of the Year|url=http://www.interactive.org/awards/award_category_details.asp?idAward=2002&idGameAwardType=27|website=Academy of Interactive Arts & Science|access-date=27 January 2018|archive-url=https://web.archive.org/web/20180127143324/http://www.interactive.org/awards/award_category_details.asp?idAward=2002&idGameAwardType=27|archive-date=27 January 2018|url-status=live}}</ref> An expansion pack ''[[Black & White: Creature Isle]]'', was released the following year.<ref name="BWCICGW">{{cite magazine|author=Thomas L. McDonald|url=http://www.cgwmuseum.org/galleries/issues/cgw_214.pdf#page=93|title=Black & White: Creature Isle|magazine=[[Computer Gaming World]]|issue=214|date=May 2002|page=89|access-date=21 January 2018|archive-url=https://web.archive.org/web/20161012115737/http://www.cgwmuseum.org/galleries/issues/cgw_214.pdf#page=93|archive-date=12 October 2016|url-status=dead}}</ref> In Lionhead's early years, Jackson wrote columns about the company and the development of ''Black & White'' for magazines such as ''[[PC Zone]]'' and ''[[:fr:Génération 4|Génération 4]]''.<ref name="LDOne"/><ref name="LDBug">{{cite magazine|magazine=[[PC Zone]]|publisher=[[Dennis Publishing]]|issn=0967-8220|pages=168, 169|issue=72|date=January 1999|title=Bug-Busting|location=London|department=The Lionhead Diaries|author=Steve Jackson}}</ref><ref name="G44">{{cite magazine|magazine=Génération 4|issn=1624-1088|title=Lionhead (4e partie) Notre premier virus|pages=34, 35|date=July 1998|issue=113|language=fr|author=Steve Jackson}}</ref><ref name="G47">{{cite magazine|magazine=Génération 4|issn=1624-1088|title=Lionhead (7e partie) Black & White enfin!|pages=84, 85|date=November 1998|issue=116|language=fr|author=Steve Jackson}}</ref> The articles were also published on Lionhead's website.<ref>{{cite web|title=The Lionhead Diaries|url=http://www.lionhead.com:80/shocked/diary/index.html|website=Lionhead Studios|access-date=16 July 2018|archive-url=https://web.archive.org/web/20010802125938/http://www.lionhead.com/shocked/diary/index.html|archive-date=2 August 2001|location=Guildford|url-status=live}}</ref> According to [[Eurogamer]], Lionhead "was a continuation of the culture and development ethic of Bullfrog", which included the playing of pranks. One such prank was one "that would go down in Lionhead history". It involved a visit from the Mayor of Guildford during the development of ''Black & White'': Healey had inserted a couple of wires into a woollen glove with the other ends put into a floppy drive. Molyneux was forced to explain to the Mayor how the game's on-screen hand was controlled by the glove (which Healey was wearing), when it was actually being controlled by a mouse with Healey's other hand, which were hidden. The Mayor fell for the trick.<ref name="eg history"/><ref>{{cite book|author1=James Leach|author2=Christian Bravery|title=The Making of Black & White|date=2001|publisher=Prima Games|isbn=978-0-7615-3625-3|pages=18, 19}}</ref> By June 2002, Lionhead had established satellite companies, including Big Blue Box Studios, Intrepid Computer Entertainment (also called Intrepid Developments<ref name="LDParty">{{cite magazine|magazine=[[PC Zone]]|publisher=[[Dennis Publishing]]|issn=0967-8220|page=153|issue=74|date=March 1999|title=Party Like It's 1999|location=London|department=The Lionhead Diaries|author=Steve Jackson}}</ref>), and Black & White Studios.<ref name="Inside"/><ref name="BullfrogLegacy"/> Lionhead and its satellite studios had 107 employees and were developing six games: ''[[Fable (2004 video game)|Fable]]'', ''[[The Movies (video game)|The Movies]]'', a project called ''Creation'' (also called ''Dimitri''), ''Black & White NG'' (''Black & White Next Generation''), ''[[Black & White 2]]'', and ''[[BC (video game)|BC]]'',<ref name="Inside">{{cite magazine|magazine=Edge|publisher=[[Future plc]]|title=Inside... Lionhead Studios|pages=70–75|issue=111|date=June 2002|issn=1350-1593|location=Bath}}</ref> despite Molyneux's earlier statement that Lionhead would only work on one at a time.<ref name="Legend"/> The idea to form these satellite studios came from Jackson during the development of ''Black & White''.<ref name="SecretHistory">{{cite web|author1=Simon Carless|title=The Secret History of Lionhead: Molyneux, Webley Get Honest|url=https://www.gamedeveloper.com/business/the-secret-history-of-lionhead-molyneux-webley-get-honest|website=[[Gamasutra]]|access-date=22 January 2018|date=16 October 2006|archive-url=https://web.archive.org/web/20180122125419/https://www.gamasutra.com/view/feature/130220/the_secret_history_of_lionhead_.php|archive-date=22 January 2018|url-status=live}}</ref> Big Blue Box Studios was founded in July 1998 by Ian Lovett and Simon and Dene Carter,<ref name="SiliconValley">{{cite magazine|magazine=Edge|publisher=[[Future plc]]|title=Inside silicon valley, UK|pages=74–81|issue=76|date=October 1999|issn=1350-1593|location=Bath}}</ref><ref name="BullfrogLegacy">{{cite magazine|magazine=[[Retro Gamer]]|publisher=[[Imagine Publishing]]|location=Bournemouth|issn=1742-3155|title=Revisiting Bullfrog: 25 Years On|pages=60–67|issue=110|date=December 2012}}</ref> because of a desire to leave Electronic Arts and "the sadly ravaged corpse of Bullfrog it had left behind".<ref name="RiseFall"/> Intrepid Computer Entertainment was founded by Joe Rider and Matt Chilton,<ref name="BullfrogLegacy"/> and Black & White Studios was headed by Jonty Barnes, who was a programmer on ''[[Dungeon Keeper]]'' and ''Black & White''.<ref name="Inside"/> According to Molyneux, ''The Movies'' came about because Lionhead listened to some financial advisers after the release of ''Black & White'', who said that the company would die if it did not float on the stock market. The company then went for [[initial public offering]], which Molyneux said was "The most stupid thing that ever happened" because it meant having to expand quickly and develop more games.<ref name="RiseFall">{{cite web|author1=Rich Stanton|title=Lionhead: the rise and fall of a British video game legend|url=https://www.theguardian.com/technology/2016/may/20/lionhead-the-rise-and-fall-of-a-british-video-game-legend|website=The Guardian|access-date=22 January 2018|date=20 May 2016|archive-url=https://web.archive.org/web/20180122181547/https://www.theguardian.com/technology/2016/may/20/lionhead-the-rise-and-fall-of-a-british-video-game-legend|archive-date=22 January 2018|url-status=live}}</ref> In the early 2000s, Lionhead was "growing very fast".<ref name="SecretHistory"/> The company was nominated for the 2002 [[Golden Joystick Awards]] British Developer of the Year award.<ref>{{cite web |title=Golden Joystick Awards Is Announced |url=https://worthplaying.com/article/2002/9/17/news/5775/ |website=Worthplaying |access-date=11 February 2019 |date=17 September 2002 |archive-url=https://web.archive.org/web/20190212011637/https://worthplaying.com/article/2002/9/17/news/5775/ |archive-date=12 February 2019 |url-status=live }}</ref> Before ''Fable'' shipped, Lionhead purchased Big Blue Box and Intrepid.<ref name="eg history"/> The decision to merge Big Blue Box with Lionhead was made to accelerate the completion of the game.<ref name="eg history"/> ''Fable'' was released in 2004 for the [[Xbox (console)|Xbox]],<ref name="LHProfile"/> and won AIAS awards for Outstanding Achievement in Character or Story Development and Outstanding Achievement in Original Musical Composition in 2005.<ref>{{cite web|title=Outstanding Achievement in Character or Story Development|url=http://www.interactive.org/awards/award_category_details.asp?idAward=2005&idGameAwardType=86|website=Academy of Interactive Arts & Sciences|access-date=27 January 2018|archive-url=https://web.archive.org/web/20180127143334/http://www.interactive.org/awards/award_category_details.asp?idAward=2005&idGameAwardType=86|archive-date=27 January 2018|url-status=live}}</ref><ref>{{cite web|title=Outstanding Achievement in Original Musical Composition|url=http://www.interactive.org/awards/award_category_details.asp?idAward=2005&idGameAwardType=95|website=Academy of Interactive Arts & Sciences|access-date=27 January 2018|archive-url=https://web.archive.org/web/20180127143313/http://www.interactive.org/awards/award_category_details.asp?idAward=2005&idGameAwardType=95|archive-date=27 January 2018|url-status=live}}</ref> ''Dimitri'' was cancelled.<ref name="eg history"/> In 2003, [[Gary Carr (video game developer)|Gary Carr]] joined Lionhead.<ref>{{cite web|author1=Racher Weber|title=Lionhead's creative director Gary Carr departs|url=http://www.gamesindustry.biz/articles/2015-09-14-lionheads-creative-director-gary-carr-departs|website=Gamesindustry.biz|access-date=22 January 2018|date=14 September 2015|archive-url=https://web.archive.org/web/20180122072605/http://www.gamesindustry.biz/articles/2015-09-14-lionheads-creative-director-gary-carr-departs|archive-date=22 January 2018|url-status=live}}</ref> Due to the stock market crash in the aftermath of [[September 11 attacks|9/11]], Lionhead sought investments from venture capitalists.<ref name="eg history"/> Deals with various firms were signed in July 2004.<ref name="SecretHistory"/> This came at a time when the company needed money for the development of five games to be released by different publishers.<ref name="eg history"/>
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