Not a bad deal at all when those issues are all PC related.
Lionhead will develope for the Xbox 360 exclusively from now on

As for everyone asking why doesn't M$ just buy this and that developer,
you can't buy a developing house if it's not up for sale.
Not only did M$ go after Sega, but how many of you knew that they threw an offer at Nintendo as well?
Actually Nintendo was shocked at the offer to begin with. They said it was a lot of money, but too bad they weren't up for sale. This was during the time that M$ decided to jump in the console market, before the Gamecube came out.
The way Nintendo sounded, if they're ever in trouble, they might just sell out instead of sticking to software developement and publishing.
very true, nintendo was lost to why MS would even make an offer to begin with. if you read the book "opening the xbox" it tells in detail some of the companies that MS went after before launching the xbox.
i agree 100%, even though he didnt come up with the idea behind fable, im sure his influence added a lot to the game