Microsoft is opening a new studio in London, focused on entertainment as a service and concentrating on the Windows 8 tablet format.
The team will be led by former Rare production director Lee Schuneman and report directly to Phil Harrison, corporate vice president of the interactive entertainment business in Europe.
Schuneman was behind Kinect Sports, the Xbox 360 avatars, Fable: The Journey and the Sky TV app. The new studio is Microsoft's fourth outfit alongside Rare, Lionhead and Soho Productions.
"I'm hugely excited by this new venture," said Lee Schuneman. "Adding a fourth UK-based studio to the incredible roster of talent already in place across Rare, Soho Productions and Lionhead not only increases our in-region studio presence, but will allow Microsoft Studios to explore the many creative and business opportunities that developing new games and entertainment experiences on Windows 8 tablet devices and platforms will afford."