It's been reported that Microsoft is getting ready to open up a new games development studio in London and concurrently hiring experienced staff to run it. This new base will actually be the fourth Microsoft games studio in the UK and the second in London. The other notable studios in the country are Lionhead, Rare and Xbox Soho.
According to job listings and news reports, this new studio will mainly focus on the development of free-to-play, online and mobile games. Microsoft seems to be looking to expand its social market, probably due to the popularity of those games.
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