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  1. Games
  2. Action RPGs
  3. Fable

Fable's Peter Molyneux was happy to become a Microsoft partner as he's "absolutely motivated by praise," especially from Xbox boss Phil Spencer: "He's someone that absolutely loves the game industry"

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By Kaan Serin
Published 5 October 2025

"So I let myself forget how awful it had been, being SVP at EA."

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Fable, Black & White, and Dungeon Keeper developer Peter Molyneux is someone who's "absolutely motivated by praise," so he was really happy when Microsoft offered to acquire the studio he co-founded: Lionhead.

"Lionhead was 350 people, with a burn rate that meant I had to change my underpants twice a day, and these escalating costs of development," Molyneux remembered of the studio before it was purchased in 2006, speaking to the latest issue of Edge Magazine.

"Fable II was showing promise, but still needed work. And so we were acquired by Microsoft. It was a very different company then to what it is now, because they had this feeling of shame about them. They'd released Windows Vista. The world hated it. The game division was this one little jewel people loved," he said.

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The famed game dev also recalled some memories of Phil Spencer, who ran most of Microsoft Game Studios during the Xbox 360 generation, before being promoted to head of Xbox partway through the Xbox One generation, before being promoted to Microsoft's VP of gaming now.

"He's one of the best people I've ever worked with," Molyneux went on. "I'm not saying this to butter him up - he's someone that absolutely loves the game industry, and is unbelievably smart. But he's worked in Microsoft his whole life. Phil used to work out of the Lionhead offices, so we spent a lot of time working together. And he said, 'You know, Peter, I'd really love to use your talents a bit more widely at Microsoft.'"

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  • The Hero, on horseback, looks at a lush medieval-style city in the distance in Fable (2027) for Xbox Series X Amid relentless Xbox layoffs, Fable lead says the RPG is seen as "vital to the DNA of the platform"
  • Psychonauts 2 release date announced Xbox CEO Asha Sharma is "not going to shoot my dog," says now-indie Double Fine boss Tim Schafer

Of course, Spencer's a more divisive figure nowadays since he's been at the helm of Microsoft's gaming division while it recently canned multiple projects and raised Game Pass prices by 50%, though Molyneux's still a fan.

"Now, I am someone who is absolutely motivated by praise, so when he said, 'We want to make you a Microsoft partner, I thought: Fantastic they really like me!" It's just going back to school, this kid wanting to be liked, really – that's what it all comes down to. So I let myself forget how awful it had been, being [senior vice president] at EA."

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Fable 3 lead Peter Molyneux says he "should have fought for more time" to deliver the divisive RPG, and there's a Lionhead battle royale we'll never see as Xbox killed the studio

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Kaan Serin
Kaan Serin
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Kaan freelances for various websites including Rock Paper Shotgun, Eurogamer, and this one, Gamesradar. He particularly enjoys writing about spooky indies, throwback RPGs, and anything that's vaguely silly. Also has an English Literature and Film Studies degree that he'll soon forget.

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