Steve Jackson went on to found Lionhead Studios, which created the Fable series of video games.

BBC: Fighting Fantasy series resurrected for 30th anniversary

In Fable I, II and III, Peter Molyneux and his team at Lionhead Studios created three action role-playing games that were charming, smart and unique.

FORBES: Fable: The Journey Review

Mr Molyneux said Milo had been built using artificial intelligence developed by his firm Lionhead studios, along with technology that was "hidden in the dusty vaults of Microsoft".

BBC: 'Virtual human' Milo comes out to play at TED in Oxford

It seems as if Lionhead Studios has listened to the critics of Fable III, who complained about overly simple gameplay and a lack of emotional connection to the character.

FORBES: A First Look at 'Fable: The Journey' for the Xbox Kinect

Lee Schuneman brings a a unique mix of creative, production and strategic business leadership to the new outfit, which will join Rare Ltd, Lionhead and Soho Productions in Microsoft Studios' stable of UK-based operations.

ENGADGET: Microsoft announces new entertainment and game studio focused on Windows 8 tablet development

'Adding a fourth UK-based studio to the incredible roster of talent already in place across Rare Ltd, 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.

ENGADGET: Microsoft announces new entertainment and game studio focused on Windows 8 tablet development