Microsoft on the hunt for Lionhead

Rumors rumbling out of GDC report that Microsoft and Lionhead are in the final stages of negotiating an acquisition deal that would welcome Peter Molyneux's development studio into the Microsoft gaming family.

The future looked bleak for Lionhead earlier this month when the British studio was forced to cut 20% of its workforce, but this recent development suggests that Molyneux and crew will soon be back on track. Then again, look what happened to Rare under Microsoft's arm...