I think this is really interesting news. In the console videogame industry, studio acquisitions have historically been of big retail-game developers. Twisted Pixel is a 25-person shop in Austin known for XBLA games. Even their first retail title, Gunstringer, started as XBLA and scaled up. They’re a great studio and I hope this works out.
Microsoft revealed today that it has acquired Splosion Man developer Twisted Pixel Games