Microsoft To Shut Down Lionhead Studios, 'Fable Legends' Cancelled

Bad news for "Fable" fans. Microsoft has announced in a blog post that Lionhead Studios, the company known in recent years for the critically acclaimed "Fable" franchise, may shut down. Meaning that development for the upcoming cross-platform multiplayer title, "Fable Legends" is being canceled along with it.

In a double whammy, Microsoft also revealed that Danish studio Press Play, the company behind "Max: The Curse of Brotherhood" and "Kalimba" is being shut down as well, effectively cancelling any projects the studio had in development.

"These have been tough decisions and we have not made them lightly, nor are they a reflection on these development teams-we are incredibly fortunate to have the talent, creativity and commitment of the people at these studios," Microsoft Studios Europe General Manager Hanno Lemke wrote. "The Lionhead Studios team has delighted millions of fans with the Fable series over the past decade."

Founded in 1996 by Peter Molynux, Lionhead put itself on the map with the "Black & White" series of god games, before launching the fantasy RPG "Fable" and business sim "The Movies." It was later acquired by Microsoft in 2006 and shifted its entire focus into launching "Fable" games. Since then, it launched a series of follow-ups, such as "Fable II" and an ill-fated Kinect-powered spin-off, before Molyneux left in 2012 to form 22cans, the company behind the strategy game "Godius."

Though these two companies are facing the end of the line, Microsoft was sure to note that the development doesn't reflect its status in the U.K. and Europe, saying that it remains committed to the development communities in the aforementioned communities.

Technically, the exact words of the announcement, "[we] are in discussions with employees about the proposed closure of Lionhead Studios in the U.K.," indicates that there is still a chance that studio may survive - albeit in a reduced capacity.

However, based on the tone of the announcement, as well as the fact that Microsoft said it is working with those affected by the news to find them new opportunities at Xbox or in the games industry, leaves little question that Lionhead is unlikely to exist for much longer in its current form.

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