Microsoft Acquires Startup R2 Studios

Microsoft Corp. has acquired a small home-entertainment technology startup to beef up its Xbox unit, according to people familiar with the matter.

The company, id8 Group R2 Studios Inc., was created by entrepreneur Blake Krikorian in May 2011. Mr. Krikorian will be joining the Redmond, Wash., software giant with a small team. As part of the deal, Microsoft also acquired some patents owned by the startup related to controlling electronic devices.

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