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Lionhead Studios

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Lionhead Studios Limited
Company typePrivate
IndustryVideo games
FoundedJuly 1997; 29 years ago (1997-07)
FounderPeter Molyneux, Mark Webley, Tim Rance, Steve Jackson
DefunctApril 29, 2016 (2016-04-29)
FateClosed by parent company Microsoft Studios
Headquarters
Guildford
,
United Kingdom
Area served
Worldwide
Key people
Peter Molyneux (co-founder), Mark Webley (co-founder), Steve Jackson (co-founder), Gary Carr (former creative director)
ProductsBlack & White, Fable series, The Movies
Number of employees
220 (in 2005)
ParentMicrosoft Studios (2006–2016)

Lionhead Studios Limited was a UK-based video game developer established in July 1997 by Peter Molyneux, Mark Webley, Tim Rance, and Steve Jackson. The studio gained recognition primarily for the Black & White and Fable franchises. Lionhead emerged as a spin-off from Bullfrog Productions, which was also founded by Molyneux. Their inaugural release, Black & White, a unique god game that combined elements of artificial life with strategy, was launched by Electronic Arts in 2001. The studio’s name was inspired by Webley's pet hamster, which passed away shortly after the company’s formation, briefly leading to a proposed rename to Redeye Studios.

Following the success of Black & White, Lionhead introduced the expansion pack Black & White: Creature Isle. Subsequently, the company released Fable, developed through its satellite team Big Blue Box. In 2005, Lionhead brought out both The Movies and Black & White 2. Confronted with financial difficulties, the studio was acquired by Microsoft Studios in April 2006. This acquisition triggered departures including co-founder Jackson and several other staff members who later founded Media Molecule. Molyneux exited in early 2012 to launch 22cans, aiming for greater creative independence. After his departure, Microsoft steered Lionhead towards creating games as a service, resulting in substantial internal restructuring.

In March 2016, Microsoft declared its intention to shut down Lionhead Studios and cancel the forthcoming title Fable Legends. The closure was finalized on 29 April 2016. Following this, founders Webley and former creative director Gary Carr went on to form Two Point Studios.

Founding

Peter Molyneux founded Bullfrog Productions in 1987, which was later acquired by Electronic Arts (EA) in 1995. Around 1996, feeling constrained creatively under EA’s management, Molyneux along with future Lionhead co-founders Mark Webley, Tim Rance, and Steve Jackson began laying plans for a new development company.[1][2][3] After disputes with EA, Molyneux left Bullfrog in July 1997 and shortly thereafter co-established Lionhead,[1][4][2] joined by Webley, Rance, and Jackson—who was known for co-founding Games Workshop and co-authoring the Fighting Fantasy series.[5] Jackson returned to game development after previously interviewing Molyneux about Bullfrog projects.[6] Molyneux considered Jackson’s lack of programming skills an advantage.[6] Lionhead became the second studio formed as a Bullfrog offshoot following Mucky Foot Productions in February 1997.[7] Glenn Corpes (co-founder of Lost Toys[7]) described Lionhead as Molyneux’s interpretation of Bullfrog’s approach.[8]

The studio’s goal was to create high-quality games without rapid expansion.[9] Molyneux stressed the importance of running a professional company focused on developing one project at a time.[1][10] Early team members included notable figures such as Demis Hassabis, first artist Mark Healey,[11] and Alex Evans.[9]

The company took its name from Webley's recently deceased hamster.Cite error: The opening <ref> tag is malformed or has a bad name Although alternative names like Black Box, Red Rocket, Midnight, and Hurricane were considered,[5][6] the initial preference for Red Eye was abandoned due to conflicts with existing domain names and potential negative associations.[5][6] Ultimately, the studio reverted to Lionhead, though early press coverage sometimes referred to it as Redeye due to timing.[5][4] Molyneux aspired for Lionhead to become a globally recognized developer renowned throughout Europe, Japan, and America for producing premium-quality games.[4]

Early period

News about Lionhead spread rapidly. Within just one month, companies such as Sega, Nintendo, Eidos, GTI, and Lego scheduled meetings. A "major Japanese console manufacturer" unveiled plans for a "next generation console," although Lionhead's initial game was already under contract.[12]

By July, Lionhead had secured a one-title agreement with Electronic Arts.[12] The studio originally operated out of Molyneux's residence in Elstead,[9] before moving to the University of Surrey Research Park in 1998.[13] This prime location was granted thanks to the strong reputations of Molyneux and Bullfrog.[13]

Lionhead intended to make its first appearance at the E3 trade event in May 1997 but withdrew due to the absence of an EA deal, opting instead to debut at the European Computer Trade Show in September.[12] The event attracted significant attention from leading European journalists.[12]

By August 1998, after receiving over 100 applications from an Edge advertisement, Lionhead appointed Russell Shaw as Head of Music.[13] Their debut game, Black & White, published by Electronic Arts under terms from Molyneux's Bullfrog departure,[9] launched in 2001 to widespread critical praise.[3] It earned BAFTA Awards for Interactivity and Moving Images that same year,[14] as well as Academy of Interactive Arts & Sciences accolades for Computer Innovation and Game of the Year in 2002.[15] An expansion pack, Black & White: Creature Isle, followed in 2002.[16] Steve Jackson chronicled the development process through magazine columns in titles like PC Zone and Génération 4, also making these available on Lionhead's website.[17]

Eurogamer highlighted that Lionhead maintained Bullfrog’s culture and development philosophy, including practical jokes such as deceiving the Mayor of Guildford with a counterfeit glove controller during Black & White production.[9][18]

By June 2002, Lionhead had established satellite studios: Big Blue Box Studios, Intrepid Computer Entertainment (also known as Intrepid Developments[19]), and Black & White Studios.[20][21] Collectively, these studios employed 107 personnel working on six projects: Fable, The Movies, Creation (also referred to as Dimitri), Black & White NG, Black & White 2, and BC.[20] This approach of managing multiple projects simultaneously marked a departure from Molyneux’s previous single-project focus.[10] The satellite studio concept was introduced by Jackson during the development of Black & White.[22]

Big Blue Box was established in July 1998 by Ian Lovett along with Simon and Dene Carter,[7][21] driven by their desire to leave Electronic Arts amid Bullfrog’s decline.[23] Intrepid was founded by Joe Rider and Matt Chilton,[21] while Black & White Studios was headed by Jonty Barnes, who had programming experience on Dungeon Keeper and Black & White.[20]

Molyneux credited financial advisors pushing for a stock market flotation after Black & White as the reason behind developing The Movies; he later described the IPO-driven rapid expansion and multiple concurrent projects as "the most stupid thing that ever happened".[23] During the early 2000s, Lionhead underwent swift growth.[22] The company received a nomination for British Developer of the Year at the 2002 Golden Joystick Awards.[24]

Prior to launching Fable, Lionhead acquired Big Blue Box and Intrepid to expedite development.[9] Released in 2004 for the Xbox, Fable garnered AIAS awards in 2005 for Outstanding Achievement in Character or Story Development and Original Musical Composition.[25] The project known as Dimitri was eventually cancelled.[9] In 2003, Gary Carr joined the team.[26] Following the stock market downturn after 9/11, Lionhead obtained venture capital funding in July 2004 to support five concurrent projects with various publishers.[9][22]

Acquisition by Microsoft

In 2005, Lionhead launched Black & White 2 and The Movies, employing approximately 220 individuals. Both games underachieved commercially; Molyneux described The Movies as "a disaster" due to inadequate playtesting, despite it receiving a BAFTA award for Simulation in 2006. Confronted with financial strain, Lionhead was purchased by Microsoft on 6 April 2006. Ubisoft had also expressed interest in acquiring the studio, but Molyneux considered Microsoft "ideal," valuing the security offered by a larger corporation. Microsoft's motivation included securing the Fable franchise as an exclusive for Xbox, concerned that Ubisoft might have transferred it to PlayStation 3. Lionhead dedicated several months to preparing for the acquisition to protect both its future and employee positions, although some staff members like Andy Robson voiced dissatisfaction regarding contract terms. According to Molyneux, Microsoft recouped its investment through the commercial success of Fable II, which earned a BAFTA for Action and Adventure in 2009.

Post-acquisition, significant personnel changes occurred: Healey left to establish Media Molecule, and Jackson departed in 2006. Generally, the takeover proved advantageous for Lionhead, facilitating office expansion and improvements that enhanced the studio’s development capabilities. During the creation of Fable II, Lionhead encountered death threats related to the inclusion of a gay character and a diverse cast. While Microsoft largely permitted creative autonomy, they requested minor adjustments such as modifying an in-game condom icon. Marketing disagreements emerged; Microsoft promoted an image of a dragon-focused RPG that conflicted with Lionhead’s comedic tone. Art director John McCormack criticized this marketing strategy. Despite these tensions, the partnership was mostly constructive, culminating in another BAFTA accolade following the game's release.

Developed within an 18-month timeframe, Fable III did not meet expectations and faced difficulties integrating Kinect late in production. In June 2009, Molyneux was elevated to creative director of Microsoft Studios’ European division while retaining leadership at Lionhead.

The Kinect project Milo & Kate was ultimately cancelled; Molyneux attributed this outcome to Kinect’s technical limitations and Microsoft's strategic market decisions. Consequently, development shifted toward Fable: The Journey, another Kinect-based title released in 2012 that was widely regarded as unsuccessful.

Molyneux's departure

By early 2012, Lionhead underwent a significant internal upheaval known as "Black Monday," during which numerous veteran employees resigned simultaneously due to dissatisfaction with the company’s direction. McCormack recalled Molyneux reacting strongly by instructing them to leave immediately. Shortly thereafter, Molyneux issued an apology and exited Lionhead in March to establish 22cans alongside Rance, who had previously stepped down as chief technology officer. Paul McLaughlin, then head of art at Lionhead, also joined 22cans. Leadership at Lionhead temporarily passed to Webley before Scott Henson assumed control in early 2013. Molyneux cited his desire for greater creative freedom and fatigue with the Fable series—which originated in 2000 under Big Blue Box Studios—as reasons for his departure. Producer Craig Oman observed that Molyneux’s exit allowed Lionhead to redefine its identity.

This departure had a more profound impact than previous veteran exits. Some employees noted that Lionhead became more professional and structured afterward; however, since Molyneux had previously shielded the studio from Microsoft’s influence, staff felt more exposed following his exit. Subsequently, Microsoft pressured Lionhead to develop a games as a service model for the Fable franchise to rejuvenate it or face closure. This directive led to abandoning plans for Fable IV in favor of a service-oriented approach, prompting recruitment of experts in monetization and competitive game design. John Needham eventually assumed leadership of Lionhead. Creative director Gary Carr left in September 2015 and was succeeded by David Eckelberry. The studio struggled with developing Fable Legends, a project that diverged significantly from their previous work.

Closure

On 7 March 2016, Microsoft announced both the cancellation of Fable Legends and the impending closure of Lionhead Studios. The decision took some employees by surprise; many had anticipated concerns about the project rather than a full shutdown and believed that assets from Fable Legends might be repurposed for Fable IV. The closure was attributed by some insiders to "a series of poor decisions and mismanagement." Originally scheduled for release in summer 2015 alongside Windows 10, the game reportedly failed to meet internal milestones. A UK-mandated consultation delayed server shutdown until mid-April to allow customers refunds; during this period, a small "live operations" team managed ongoing support while other staff were given optional work. An initiative named Project Phoenix aimed to continue development through a new studio licensed by Microsoft but ultimately failed due to time constraints and staff departures. Lionhead officially ceased operations on 29 April 2016. Charlton Edwards, who had been the last developer involved with Black & White, recalled a farewell event at which memorabilia was distributed among employees. Later, on 26 July, founders Webley and Carr established Two Point Studios, which subsequently attracted former Lionhead personnel.

In the 2021 documentary Power On: The Story of Xbox, Microsoft acknowledged mishandling its stewardship of Lionhead Studios. Xbox head Phil Spencer admitted that redirecting Lionhead’s focus toward Kinect adversely affected game quality, stating: "You acquire a studio for what they excel at currently, and your responsibility is to help them enhance their existing strengths—not force them to accelerate your own priorities."

External links

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  4. ↑ 4.0 4.1 4.2 Cite error: Invalid <ref> tag; no text was provided for refs named Audience97
  5. ↑ 5.0 5.1 5.2 5.3 Cite error: Invalid <ref> tag; no text was provided for refs named BWMakingIntro
  6. ↑ 6.0 6.1 6.2 6.3 Cite error: Invalid <ref> tag; no text was provided for refs named LDOne
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  10. ↑ 10.0 10.1 Cite error: Invalid <ref> tag; no text was provided for refs named Legend
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  21. ↑ 21.0 21.1 21.2 Cite error: Invalid <ref> tag; no text was provided for refs named BullfrogLegacy
  22. ↑ 22.0 22.1 22.2 Cite error: Invalid <ref> tag; no text was provided for refs named SecretHistory
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