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In 2012 the studio was acquired by Microsoft and Press Play was then part of the Microsoft Studios family along with other studios like 343 Industries, Rare, Lionhead Studios, Turn 10 Studios and Twisted Pixel Games. On March 7, 2016 Microsoft announced the plan to close Press Play, and their title, "Knoxville", was cancelled. On March 10, 2016, Press Play was officially closed by Microsoft Studios. After the closure, the founders of Press Play founded a new studio called Flashbulb Games, and is working on a new sandbox game called "Trailmakers".