Microsoft to launch game studio for WinPhone7

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Touting Xbox Live integration is one thing, but creating a new studio just for games is a huge leap for Microsoft. Microsoft Game Studios, the same people who created Fable and several other popular first-party games for the Xbox 360, has announced indirectly a new group dedicated to develop games for Windows Phone 7.

The new division – MGS Mobile Gaming – will, according to a job posting, is to build “industry leading products that showcase our Windows Phone platform as well as emerging mobile platforms, and will help realize Microsoft’s connected entertainment vision.”

In fact, Microsoft is looking for a lot of people to run the job – hinting that it isn’t wanting to use its other first-party studios to extend into the mobile sphere. However, will creating a gaming studio creating exclusive games for the OS help propel Windows Phone/Windows Mobile from a spiralling downturn?