Microsoft closes Lionhead Studios and cancels development of Fable Legends
Microsoft Studios' European boss said the company wanted to focus on the games 'that fans find most exciting and want to play'
Legendary British games studio Lionhead, which created the acclaimed Fable series, is set to close, it has been announced.
Role-playing game Fable Legends, currently a work in progress, will be canned as a result of the studio's closure.
The news was revealed by Hanno Lemke, the general manager of Microsoft Studios Europe, who wrote about the "difficult changes" on the Xbox blog.
He said the decision to halt development of Fable Legends and close Lionhead Studios came after "much consideration," and stressed the move was not a reflection on the development team.
However, he pointed out that the changes were taking effect as Microsoft Studios "continues to focus its investment and development on the games and franchises that fans find most exciting and want to play."
Lionhead was founded in 1996 by games designer Peter Molyneux, and was bought by Microsoft in 2006. Some of its most famous series, like Fable and Black and White, were always met with critical acclaim and achieved commercial success during their lifetimes.
In the same blog post, he announced that Denmark-based Press Play Studios would also be shuttered, and development would cease on their upcoming co-op survival game Knoxville.
Lemke wrote: "We have nothing but heartfelt thanks for the members of Lionhead and Press Play for their contributions to Xbox and gaming."
He also said he would work closely with the affected staff to find them new jobs at Xbox or elsewhere in the games industry, and emphasised that Microsoft remains "committed" to the development community in the UK and Europe.