Lionhead Studios Obtains Capital for Future Games

Thanks to GameGossip for the news that Lionhead studios has obtained investments from several firms. These funds were obtained to fund future games. The studio currently has four titles in the pipe, with two of them due to be released next year.

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[cgenman]

I'd just like to point out that the money Lionhead gets from VC funding is likely to go into the prototyping phase, and not the development phase of any given game, which is tradtionally funded by the publisher. In other words, Lionhead now has the funds to create quite a few 20% tech demos, which are a good way of selling a game to a publisher. Coming to the table with funding in their pocket gives them the luxury of saying "no," and getting a better deal elsewhere.

While a few million from a publisher means one game made, a few million in VC gives a studio a lot freedom.