Molyneux leaves Bullfrog Productions and Electronic Arts to pursue new creative ventures.

Molyneux founds Lionhead Studios, named after his hamster, marking a new chapter in his game development career. He establishes Lionhead with Mark Webley, Tim Rance, and Steve Lyons.

Lionhead's first game, "Black & White", is released. A god game with advanced AI, it garners significant attention and demonstrates Lionhead's ambition.

"Fable" is released for the Xbox, promising a world where player choices have meaningful consequences. While critically acclaimed, some feel the game didn't fully deliver on its ambitious promises.

Microsoft acquires Lionhead Studios, making them a first-party developer. Molyneux continues to lead the studio under Microsoft's ownership.

"Fable II" is released for the Xbox 360, expanding upon the world and choices of the original "Fable". It receives generally positive reviews.

"Fable III" is released for the Xbox 360 and later for PC. While offering new gameplay mechanics and a continuation of the story, it receives a mixed reception from critics and fans.