Source: Self-explanatory British Web site Gamesindustry.biz.

The official story: "Sorry, I really can't comment on this."--Lionhead rep.

What we heard: Buried beneath the avalanche of schmoozing at this year's D.I.C.E. (Design, Innovate, Create, Entertain) awards were several tantalizing rumors. The one wagging off most attendees' tongues at the event was that Lionhead Studios had become the subject of a bidding war between two major publishers. According to Gamesindustry.biz, the suitors vying for the British developer were France-based Ubisoft and the monolith of Redmond, Washington, Microsoft.

While Lionhead reps were adamant about their inability to comment on the buyout rumors, many in attendance at D.I.C.E. were confident the confusion would be cleared up on Friday. Why? Because one of the main speakers on the final day of the Las Vegas game-industry event was Lionhead chief Peter Molyneux, who was slated to be on a panel with Sims creator Will Wright.

However, earlier today, Lionhead reps confirmed to GameSpot that Molyneux had abruptly canceled his D.I.C.E. appearance for undisclosed reasons. The executive's no-show, the second of the event after Valve Software CEO Gabe Newell called in "sick" on Thursday, threw even more fuel on the fires of speculation. Many D.I.C.E. attendees theorized that Molyneux's presence was required at Lionhead due to the advanced state of negotiations for the studio's imminent purchase.

While it must be emphasized that no official information about any potential deal has been released, a Lionhead buyout is well within the realm of possibility. Though the developer scored a solid hit with Fable in 2004, its subsequent releases have struggled. The Movies, Lionhead's Hollywood mogul sim, saw its console ports canceled by Activision "due to underperformance on the PC." (However, there are reports that it may still come to non-PC platforms.) Black & White 2, the EA-published sequel to Molyneux's deity-centric strategy game, barely sold more than 102,000 units between its October ship date and the end of 2005, according to industry trade group NPD. With the fickle winds of retail not blowing entirely in Lionhead's favor, the studio might be very tempted by the safe financial harbor a major publisher could provide.

Bogus or not bogus?: Bogus that it's official...but that could change very soon.

90 Comments

  • strategyking92

    Posted Mar 22, 2008 3:15 pm PT

    this is an old thread...

  • amnesiasoft

    Posted Jun 7, 2006 3:03 pm PT

    I'd prefer Microsoft get it, even though I absolutely despise them. I use a PC, and Ubisoft is not very PC friendly because they use Starforce on almost all of their games, and it is truly the most annoying copyright protection software ever.

    Starforce and Borland are the two greatest evils on the planet, not even Microsoft comes close to their level.

  • iammai

    Posted Mar 5, 2006 2:50 am PT

    intresting

  • Alexandros1

    Posted Feb 26, 2006 6:39 am PT

    Ubisoft anyday...Microsoft tend to stifle innovation.

  • sirIreland123

    Posted Feb 17, 2006 7:13 am PT

    I would prefer ubisoft to but them for the reason that a few others have said so that they could make games on other platforms.

  • j14rk1n

    Posted Feb 13, 2006 4:49 pm PT

    This could be interesting. I'd want Lionhead to go to Ubisoft is they're on on the market. They have the potential to make more great games, and I wouldn't want EA to get too greedy

  • hilltj

    Posted Feb 13, 2006 7:59 am PT

    This is nothing. Just wait until Microsoft starts eyeing Square-Enix.

  • grasmussen

    Posted Feb 13, 2006 7:03 am PT

    Go Ubisoft! Yeah!!!

  • gordy50

    Posted Feb 13, 2006 4:24 am PT

    atleast it isnt ea... the world would be destroyed if ea could get any more good game companies to the crappy(dark) side!

  • smo_doggy

    Posted Feb 13, 2006 3:35 am PT

    I think its important to have a little faith in Mr Molyneux. He's a man committed to the industry, and i think the company which gives the most creative space to the Lionhead team will surely win out.

  • Gmex

    Posted Feb 12, 2006 11:39 am PT

    haha lionhead was never big since they made "the movies"

  • Psycho_Teen

    Posted Feb 12, 2006 10:10 am PT

    Microsoft will not let fable go so they will buy out Lionhead if there is a biding war just like Sony bought Gorrila. Companies buy the companies that make their killer apps period.

  • e10mgs

    Posted Feb 12, 2006 10:02 am PT

    Personally i would prefer Microsoft to buy them because that way the Xbox 360 would get some good exclusives. However is saddens me that the day of the individual British developer has ended, they end up being bought by a bigger company and generally the quality of games goes down. In the days of the Megadrive etc British developers were in there prime. I guess the only big individual British developer is Rockstar and the GTA games.

  • Aaron0414

    Posted Feb 12, 2006 8:21 am PT


    If a company wants to bail them out, fine. But I can honestly say I will never buy another game with a Lionhead label on it again. They hype up their games well, but they dont bother living up to their promises or "vision."

    If they had someone to whip them into finishing what they started (like a large company who doesnt want to lose money on them), then it could be a good purchase. But without someone cracking the whip, I dont see this company's continued existence for much longer. They would just be a money sink.

    No matter how well they hype up their games, I will never be duped by [them] again.

  • hush404

    Posted Feb 12, 2006 6:16 am PT

    Bahh! I hope Ubi wins! that was all gamers win! If Microsoft wins all of Peter's games will only appear on Microsoft systems which equals lame.

  • Futurama812

    Posted Feb 11, 2006 5:18 pm PT

    i dont understand what is going on i just see a bunch of developers and publishers...can anyone put this in simpler terms??

  • mikekare79

    Posted Feb 11, 2006 5:17 pm PT

    Go MS!! Better an American company. I do love Ubisoft though.

  • racing5112

    Posted Feb 11, 2006 3:48 pm PT

    halo 2 is NOT the best game ever... simgal player is too short (me and my friend beat it the day it came out in 8 (EIGHT) hours) multiplayer is NOT the best but is pretty good. I my self prefer CoD:UO. the gameplay is PERFECT. the only flaw is out-dated graphics. IF THERE WAS ANY.. I MEAN ANY OTHER OS I COULD USE THAT WAS NOT MICROSOFT THAT COULD STILL PLAY ALL MY GAMES I WOULD USE IT. IF ANYONE KNOWS OF SUCH A THING I WOULD LOVE TO HEAR WHAT ITS CALLED

  • soulknight63133

    Posted Feb 11, 2006 3:17 pm PT

    Don't be so cheap, samekilla. Spend 2 dollars..lol(joke)

  • samekila

    Posted Feb 11, 2006 3:06 pm PT

    ill buy that for a dollar

  • soulknight63133

    Posted Feb 11, 2006 3:00 pm PT

    I agree with your point SavoyPrime, but M$ is going to need every advantage they can get if they want to truly compete against Sony and Nintendo.

  • SavoyPrime

    Posted Feb 11, 2006 1:00 pm PT

    Well, I would prefer Ubisoft buy them out. That way, Lionhead's games will be available for multilple platforms instead of just Microsoft's consoles.

  • soulknight63133

    Posted Feb 11, 2006 10:01 am PT

    I hope M$ gets them, I agree they are going need all the help they can get. Remember in the "console" arena M$ is the "underdog" here. I have to admit I'm very proud to see an American company have the "balls" to step up and "mix it up" with the BIG BOYS like Sony and Nintendo. So I'm rooting for the M$.

    "You don't have to necessarily win M$, just let them know they've been in a fight".

  • mythrol

    Posted Feb 11, 2006 7:20 am PT

    If MS wants Lionhead, they'll get Lionhead. They already bought Rare from Nintendo. This would be another good purchase for them. But that's if they really want them. . .

  • nev70

    Posted Feb 11, 2006 6:37 am PT

    Kqlyn you do not know what ur talking about Bungie IS WORTH MILLIONS how many copies of Halo &Halo 2 did Bungie move = millions ! how much revenue = MILLIONS, fool!

  • SnuffDaddyNZ

    Posted Feb 11, 2006 1:24 am PT

    I read an interview with Peter once, and I remember him saying how he funded/founded his first software company (probably Bullfrog) with credit cards, so he would for example put all the debt on one card, and pay it off with another card, and he would do this as long as needed until the studio was turning profits.

    It was great for me to read that, because I'd always wondered if you could do that with credit cards, and seeing someone do that and becoming a major player as a result was awesome.

    Funnily enough, before I read this story, earlier on today I was thinking to myself that it would be really great for them to remake Populous II using modern technology. Like stay true to the isometric perspective, and maintain ALL the gameplay as is, but use this 3D tech for the volcanoes, tidal waves and what have you.

    I mean, if Sid Meier can do it with Pirates!, surely Peter could do it with Populous II (or perhaps Powermonger?).

  • southy787

    Posted Feb 11, 2006 1:09 am PT

    If it turns into a bidding war, then it's obvious that microsoft will win, I hope ubisoft is behind this and it has nothing to do with microsoft

  • RiPPn

    Posted Feb 11, 2006 12:13 am PT

    Maybe Microsoft entered the bidding war with Ubisoft to push the price up so high as it will use more of Ubisoft’s capital, thus making Ubisoft more vulnerable and then Microsoft will go in and take them in a hostile take over. If Microsoft could take over a Ubisoft / Lionhead company they would have a First Party development team as strong if not stronger than Nintendo’s which in my opinion is still the best of all console manufacturers.

  • soreros

    Posted Feb 10, 2006 11:36 pm PT

    "What is with people and "M$"? Do they think they're clever, witty, or trendy?"

    No. "M$" is a throwback from the Windows 95 days and a satiracle piece called "Mircro$haft." It just stuck. I believe in order to be "clever, witty, or trendy," the subject would have to be relatively new. Besides, $ony would just be way too easy...

  • LordGamer0001

    Posted Feb 10, 2006 11:20 pm PT

    i dont think it would matter. the games would still be the same just a different owner of the company.

  • Drudaddy

    Posted Feb 10, 2006 10:53 pm PT

    i hope there purchased by microsoft, and then they may polish and bring the game B.C. back to life on the xbox360 i wanted that game so badly and it just vanished nothing else heard about that game.

  • AncientDozer

    Posted Feb 10, 2006 9:54 pm PT

    What is with people and "M$"? Do they think they're clever, witty, or trendy? Or that it's some defiant stab at Microsoft? Some people need to get over stupid hate and jealousy and move on. Either choose to buy from them or choose not to; don't perpetuate frivolous attempts to look cool like "M$". As for whether or not Microsoft buys them, like one of our esteemed peers says, it depends. There is no gaurantee that Micrsoft will buy them. They may have unlimited funds, but they are a corporation. Finding ways to make money is what is on their mind, like any other business. If Lionhead does not show itself to be profitable, then Microsoft probably won't time.

  • jakeboudville

    Posted Feb 10, 2006 8:41 pm PT

    interesting........

  • marcio999

    Posted Feb 10, 2006 8:32 pm PT

    ummm.. cool

  • CripticChaos

    Posted Feb 10, 2006 7:35 pm PT

    who dares to try and out bid Microsoft

  • majere613

    Posted Feb 10, 2006 6:39 pm PT

    IMHO, the problem with Lionhead recently is that it's been too much of a 'vanity project' for Molyneux. He's a very creative and individual guy, but often his big ideas and what the gaming market actually wants are very different things. People who had already played Morrowind, for example, were not that impressed by Fable's linear plot and limited and abstract character development, The Movies is a desktop toy masquerading as a game, and neither version of Black and White, IMHO, got anywhere near the playability of Populous. If Lionhead want to stay independant, they really need to start shooting more for the mass market. BTW, if I just dissed your favourite game ever, my apologies

  • Erasmus354

    Posted Feb 10, 2006 5:18 pm PT

    There is one reason why Microsoft wants Lionhead, and that is to make Fable2 an Xbox360 exclusive (with a PC version coming later most likely).

  • regulesblade

    Posted Feb 10, 2006 4:24 pm PT

    Wow it seems to be shocking

  • Jd1680a

    Posted Feb 10, 2006 4:14 pm PT

    If they dont get bought out, they could file for bankrupcy. Hopefully they dont get bought out, i like independant thinking and new ideas which LH have done. Personally if LH games arent doing that well, they should fire Molyneux before resorting to someone buying them out.

  • Jd1680a

    Posted Feb 10, 2006 4:13 pm PT

    If they dont get bought out, they could file for bankrupcy. Hopefully they dont get bought out, i like independant thinking and new ideas which LH have done. Personally if LH games arent doing that well, they should fire Molyneux before resorting to someone buying them out.

  • mattbyrnes

    Posted Feb 10, 2006 3:58 pm PT

    I hope that Ubisoft buys LionHead. Then I hope that Microsoft buys Ubisoft. Peter Molyneux with the money/ time could create the greatest games ever.

    The thought of EA owning Ubisoft makes me sick. Ubisoft publishes the best games of any developer. They do not rush titles because they know that a great game makes much more money than an average game. EA justs buys up the rights of everything and if you want to play a certain movie or sport, you're getting EA on the box.

    Atleast Microsoft lets their developers create great games by giving them time. Their have been exceptions (launch games), but MS most likely gives them the resources to catch up.

    Sony has had poor showings with some of their first party games, but I think the PS2 wasn't even competing with Xbox in abilities. Now they have no excuse. PS3 1st party games should rock. I hope they do.

  • NeoJedi

    Posted Feb 10, 2006 3:52 pm PT

    Let's hope Ubisoft is behind this.

  • soreros

    Posted Feb 10, 2006 3:46 pm PT

    Although it's HIGHLY unlikely, even if LionHead was bought out by M$, that doesn't necessarily mean that they cannot develop for the Revolution...
    If M$ does well with the 360, they may not be as concerned with mindshare (via exclusive games) as they are with overall profit. Psygnosis did something similar to this after being bought out by Sony.

  • FuguNabe

    Posted Feb 10, 2006 3:05 pm PT

    Considering Molyneux interest to develop for various systems I doubt MS will get this one although they have the most $$$ to do so. I wouldn't mind seeing a Molyneux idea for a Revolution game. He's got some crazy ideas that are great (and few not so great). The are very creative game crafters so thumbs up for who ever wins this bid war.

  • RIchard_Simmons

    Posted Feb 10, 2006 2:38 pm PT

    I really don't want Ubisoft to buy them. I loved Fable and I did find it a bit rushed, but the way the future looks for Ubi is that they will br totally taken over by EA and we all know what happens when that happens. Rushed and crappy games for the sake of money. You will see hundreds of sequals at half the quality. So just judging by Microsofts track record with Bungie and Rare they have proven they don't rush the developers (come on Halo 2 took like 3+ years didn't), if they really rushed them we would be talking about Halo 4 being in development now instead of 3, and perfect dark would have come out on Xbox a while ago. I think the best situation for non rushed games would be to go with Microsoft.

  • tomarlyn

    Posted Feb 10, 2006 2:36 pm PT

    Nintendo should buy them

  • Kizmet

    Posted Feb 10, 2006 2:16 pm PT

    I dont see MS losing any bidding war they enter. You also have to remember that Lionhead and Microsoft have a very good working relationship together. I think itll be interesting to see Lionhead making games for MS exclusively.

  • Ashkelon

    Posted Feb 10, 2006 2:16 pm PT

    microsoft would be a good choice as i hope Fable is continued on the Xbox. I don't like the thought of Ubi behind Lionhead. However I bet the studio is kinda strapped at the moment. B&W2 did sell badly, movies probably did worse.

  • DargusLacroix

    Posted Feb 10, 2006 2:00 pm PT

    go for it microsoft! with lionhead in your hands, this could mean populous and other Downloads for xbox live arcade! YAY!!!!

  • limpbizkit818

    Posted Feb 10, 2006 1:52 pm PT

    i think microsoft needs it more.

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