Microsoft has acquired Twisted Pixel, the Texas-based indie studio responsible for XBLA games such as Splosion Man.
Financial terms of the buyout were not disclosed.
Twisted Pixel will now incubate and develop the future of game and entertainment offerings on Microsoft's Xbox 360 platform”, Microsoft said.
The Austin-based studio will also shape future Kinect games, Microsoft claimed.
Develop has more on this breaking story.