Microsoft is closing down Lionhead Studios after acquiring the developer a decade ago. It has also been made known that Fable Legends will cease development with no other studio named to take over the project. Lionhead Studios has been responsible for every entry in the once-flagship Fable franchise on Microsoft systems dating back to the original Xbox.
There is no word on why exactly Microsoft has decided to shutter the studio and its current endeavor. David Eckelberry, creative director at Lionhead, was asked on twitter if this decision from Microsoft came as a surprise. He simply responded:
@BuldozerX More or less, yeah
— David Eckelberry (@eckelberry) March 8, 2016
Furthering the notion many did not see this coming, the community manager for Lionhead had just posted an update on the game’s progress the same day of the closure announcement.
The official word from Microsoft about their decision can be found here