Microsoft Studios has decided to cease development on both Fable Legends and Project Knoxville. Fable Legends was in development by Lionhead Studios and Microsoft Studios is actively talking with employees about a closure of the studio. Project Knoxville was in development by Press Play Studios and Microsoft Studios has closed the studio as of today.
Lionhead Studios was founded in 1996 and acquired by Microsoft Studios in 2006. It was home to renowned developer Peter Molyneux and his work on the Fable franchise. Press Play Studios began work in the games industry in 2006 and was acquired by Microsoft Studios in 2012. The studio’s biggest games were Max: The Curse of Brotherhood and Kalimba, both of which garnered large fan bases.
Fable Legends had been in beta since October of 2014, so while the game certainly had its struggles and a prolonged beta period, it was still being actively worked on and updated. Microsoft Studios thanked the members of both developers “for their contributions to Xbox and gaming.” Here’s hoping that that everyone affected in today’s surprise news can land on their feet.