Microsoft announced today that Microsoft Game Studios is opening a European branch. The branch is being opened to more effectively communicate with Microsoft's European studios and partners, including Lionhead, Rare, Remedy, Real Time Worlds, and Bizarre Creations. It will be based in Reading, UK, hometown of Ricky Gervais (who is actually featured in Microsoft training videos). The new branch will be headed by Phil Spencer, currently Microsoft Game Studios' general manager. Spencer will retain his current position while heading up the new European branch.
Hopefully, this means we'll see Fable 2 before 2009.
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