As GameSpot News suspected - and reported on last November - Microsoft will acquire Chicago-based FASA Interactive and parent company Virtual Worlds Entertainment Group from FASA Corp shareholders. The deal, announced Thursday, will give Microsoft all electronic rights to FASA's BattleTech games which includes the popular MechWarrior series.

　　``The acquisition of FASA Interactive reflects our commitment to growing our business with a smaller portfolio of top-quality games,'' said Ed Fries, general manager of Microsoft's games group.

　　Right now, there isn't any talk of numbers, but contacts close to FASA say Microsoft has been making attractive offers to top talent at the company in an effort to retain their skills. The FASA team will be moving to Microsoft's product development offices in Redmond, Wash. Development and publishing of MechWarrior 3 by Hasbro Interactive and MicroProse will continue, but MechWarrior 4 looks to be a Microsoft product.

　　We spoke to Ed Fries, general manager of Microsoft's games group, who was clearly excited about the acquisition. Fries said the deal started about nine months ago. The two companies discovered they worked well together, and talks of acquisitions began.

　　"We're extremely excited about the acquisition. FASA has a fantastic creative staff," Fries said. "And while I have very creative people here at Microsoft, the addition of Jordan Weisman's creative spark and storytelling ability is hard to find." And with over US$70 million in sales, FASA's creative genius is a highly profitable one.

　　The deal is done, and FASA is part of Microsoft. FASA is now in the middle of relocating to the Microsoft campus, into an older media lab building complete with black walls and odd angles. While the crew has to deal with the changeover from the windy city to the rainy one, FASA employees gain added stability, and the company gains more money to fund its titles. Fries said that both MechWarrior 4 and MechCommander 2 are already set for development alongside FASA's Crimson Skies.

　　When we asked about the rumored demise of Shadowrun - as we previously reported – he didn't exactly say the title had been killed, but Fries did say gamers can expect some changes to the FASA lineup.

　　Fries said a FASA built, massively multiplayer title for the MSN Gaming Zone was on his wish list. And of course, all of FASA's upcoming titles will have built-in support for MSN Gaming Zone.

　　Microsoft's early beginnings in the game market were lackluster at best but the company's focus on a smaller offering of games has paid off with popular titles like Age of Empires, Flight Simulator, and Close Combat. The FASA acquisition should strengthen Microsoft's game lineup.