Peter Molyneux will leave Microsoft Game / Lionhead Studios once he's finished developing Fable: The Journey for Kinect. He'll be replaced by co-founder Mark Webley at the studio, with Redmond yet to name his successor at corporate level. Molyneux will partner with (Lionhead's) former CTO Tim Rance and Director Peter Murphy on 22 Cans, developing games under their own flag as he did when founding Lionhead and Bullfrog before that. The new company is based in Farnborough, 12 miles west of Lionhead's Guildford location and was registered on February 20th of this year. Given our childhood love of both Bullfrog and Lionhead's games, we wish both parties the very best -- you can check out when he visited The Engadget Show here.

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Peter Molyneux leaves Lionhead and Microsoft to found 22 Cans