Microsoft Studios (previously known as Microsoft Game Studios) is a publishing and development company currently owned by the Microsoft Corporation. The company was established in 1999 and currently owns Lionhead Studios. In addition to the highly successful Fable franchise, Microsoft Game Studios owns other highly successful franchises like Forza Motorsport, Mechwarrior, and Halo.
Microsoft Game Studios bought out Lionhead Studios in April of 2006 after the delays in the production of Fable and The Movies made Lionhead available for buyout. Since then, Lionhead changed its priority to making games for Microsoft consoles par their orders. Eventually, through the success of the Fable series, Microsoft Game Studios promoted Peter Molyneux, former head of Lionhead Studios, to creative director of the European division of Microsoft Game Studios. He announced his departure on 7 March, 2012.
- In The Archaeologist quest in Fable II, one of the descriptions in the Ancient Scrolls mentions "a drawing of a mouse riding a lion, using a whip to make it go faster." This is likely a reference to Microsoft Game Studios' tendency to rush their game developers, as they did to Lionhead during the production of various Fable games.