Editing Lionhead Studios (section)

===Acquisition by Microsoft===
In 2005, Lionhead released two titles: ''Black & White 2'' and ''The Movies''.<ref name="eg history"/> Around this time, Lionhead had roughly 220 employees.<ref name="SecretHistory"/> These titles did not achieve a massive impact in sales (Molyneux described ''The Movies'' as "a disaster" due to lack of playtesting.<ref name="RiseFall"/> However, it won a BAFTA Award for Simulation in 2006.<ref>{{cite web|title=Simulation in 2006|url=http://awards.bafta.org/award/2006/games/simulation|website=BAFTA|access-date=27 January 2018|archive-url=https://web.archive.org/web/20180203074504/http://awards.bafta.org/award/2006/games/simulation|archive-date=3 February 2018|url-status=live}}</ref>), and Lionhead soon afterwards encountered financial difficulty.<ref name="eg history"/> Due to this, on 6 April 2006, Lionhead Studios was acquired by Microsoft.<ref name="MSAcq"/> [[Ubisoft]] was another contender for the acquisition of Lionhead,<ref name="eg history"/> but Molyneux believed Microsoft to be "perfect",<ref name="EdgeMS">{{cite web|title=Molyneux: MS 'Perfect' for Lionhead|url=http://www.edge-online.com/features/molyneux-ms-perfect-lionhead/|website=Edge|access-date=21 January 2018|archive-url=https://web.archive.org/web/20130531034210/http://www.edge-online.com/features/molyneux-ms-perfect-lionhead/|archive-date=31 May 2013|date=6 April 2006}}</ref> and said people wanted "the safety and security of being part of something bigger".<ref name="RiseFall"/> Microsoft wanted the ''Fable'' series to be an Xbox exclusive, and knew that if Ubisoft had acquired Lionhead, it would have gone to the [[PlayStation 3]] instead, a conclusion that Webley concurred with.<ref name="eg history"/> Lionhead were concerned with securing the company's future and protecting jobs and spent "months" preparing for the acquisition.<ref name="eg history"/> Some, such as Andy Robson (Head of Testing), were dissatisfied with the deal.<ref name="eg history"/> He claimed Lionhead were trying to cheat him out of money he was owed.<ref name="eg history"/> Molyneux believed that Microsoft were pleased with the deal, and said that they made their money back due to the release of the "fantastically successful" ''[[Fable II]]'' (it won a BAFTA Award for Action and Adventure in 2009)<ref>{{cite web|title=Action And Adventure in 2009|url=http://awards.bafta.org/award/2009/games/action-and-adventure|website=BAFTA|access-date=27 January 2018|archive-url=https://web.archive.org/web/20180127202639/http://awards.bafta.org/award/2009/games/action-and-adventure|archive-date=27 January 2018|url-status=live}}</ref> for the [[Xbox 360]] in 2008.<ref name="eg history"/><ref name="LHProfile"/> In late 2005, Healey left Lionhead with Evans and a couple of other developers to found [[Media Molecule]].<ref name="eg history"/><ref name="EdgeMH">{{cite web|title=Mark Healy Leaves Lionhead|url=http://www.edge-online.com/news/mark-healy-leaves-lionhead/|website=Edge|access-date=22 January 2018|archive-url=https://web.archive.org/web/20130531064752/http://www.edge-online.com/news/mark-healy-leaves-lionhead/|archive-date=31 May 2013|date=16 December 2005}}</ref> Jackson also left in 2006 when Microsoft took over.<ref name="JacksonInt">{{cite web|url=https://www.theregister.co.uk/2013/06/06/feature_interview_steve_jackson/|title=Interview: Steve Jackson, role-playing game titan|author=Mike Plant|website=[[The Register]]|date=6 June 2013|access-date=24 January 2018|archive-url=https://web.archive.org/web/20180124195658/https://www.theregister.co.uk/2013/06/06/feature_interview_steve_jackson/|archive-date=24 January 2018|url-status=live}}</ref>

The general consensus amongst Lionhead was that the buyout "benefited Lionhead greatly".<ref name="eg history"/> Microsoft purchased a lease that enabled Lionhead to expand to multiple floors, a canteen, and an office revamp.<ref name="eg history"/> According to ''Fable'' franchise director Ted Timmins, the improvements felt like Lionhead was "a real developer".<ref name="eg history"/> The pranks were also reduced.<ref name="eg history"/> During the development of ''Fable II'', Lionhead received death threats because the game featured a gay character and some of the leading characters were black.<ref name="eg history"/> Microsoft, for the most part, left Lionhead alone during the development of ''Fable II'', but did ask them to change the icon of a condom (the game featured a dog who was able to dig them up) to a modern one, despite the game being set in an earlier era. Lionhead and Microsoft conflicted over the game's marketing: Microsoft believed that role-playing games were about dragons and wanted to market the game as such, despite Lionhead's insistence that the game was "a Monty Python-esque comedy". According to ''Fable'' art director John McCormack, the marketing was "shit" and that dragons were ''[[Dungeons & Dragons]]'' fare and had nothing to do with ''Fable''.<ref name="eg history"/> Despite the row, most of the ''Fable II'' team thought highly of the relationship between Lionhead and Microsoft, and after the game's release, Lionhead won a [[BAFTA Award]] for the best action adventure game. There was also a dispute over ''[[Fable III]]''{{'}}s box art. The game was developed and released in 18 months, but fell short of the expectations set by the previous installment.<ref name="eg history"/> Six months before its release, Lionhead attempted to integrate [[Kinect]] into the game, but failed. In June 2009, Molyneux became creative director of Microsoft Studios' European division,<ref name="CDMS">{{cite web|author1=Matt Martin|title=Molyneux promoted to creative director of Microsoft Game Studios|url=http://www.gamesindustry.biz/articles/molyneux-promoted-to-creative-director-of-microsoft-game-studios|website=GamesIndustry.biz|access-date=25 January 2018|date=4 June 2009|archive-url=https://web.archive.org/web/20180126012413/http://www.gamesindustry.biz/articles/molyneux-promoted-to-creative-director-of-microsoft-game-studios|archive-date=26 January 2018|url-status=live}}</ref> a position he held concurrently with the head of Lionhead.<ref name="ChairPM"/>

Another Kinect-based project, ''[[Project Milo|Milo & Kate]]'' was in development but was cancelled. Molyneux blamed the cancellation on Kinect's technology and Microsoft's attitude towards their target market. Its development team moved to ''[[Fable: The Journey]]'', another Kinect game that was released in 2012 and was "disastrous".<ref name="eg history"/>