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I'm sure they don't mind that it's good PR but there is no way they go to that much trouble just to impress the small number of gamers who know anything about it. It's more likely that they are interested in grabbing anyone with an impressive resume.

That being said, Lionhead of the last few years hasn't exactly been a top developer and it's also likely that Microsoft will attempt to keep the cream of the crop. This might not amount to much.