Microsoft goes on record to state that Rare and Lionhead are currently safe from closures.
We have kept you up to date on the closure of Ensemble Studios since the rumor broke a little while ago. According to studio employee Bruce Shelley, one of the main reasons Ensemble was closed was due to its high budget. There are two other internal Microsoft Games Studios that also suffer from this issue, Lionhead Studios and Rare.
Phil Spencer, head of Microsoft Game Studios went on record today stating that “the work that those studios are doing, [is] incredibly important to MGS.” Spencer went on to talk up Fable II, “I was playing Too Human with somebody last night, co-op, somebody who I didn’t know, and he went on and on about the anticipation of Fable 2.” He followed up with “yes, the next Lionhead game is definitely an MGS game. And Peter’s right - it’s very different than games that Lionhead or many others have built before.”
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