Bloomberg reports Microsoft has bought game developer Lionhead.
Terms weren't disclosed in a statement distributed by PR Newswire. Molyneux already produced his game Fable as an exclusive for Microsoft's Xbox machine. Fable has sold more than 2 million copies.
Sony's PlayStation 2 outsold Microsoft's first Xbox by a margin of about 6 to 1. The new Xbox 360 went on sale in November, a year before Sony's next effort, and Microsoft is trying to line up exclusive games to attract customers to its platform. Molyneux is one of nine inductees into the Academy of Interactive Arts and Sciences Hall of Fame.