In a surprising blog post this morning, Microsoft has announced that Lionhead Studios, known in recent years for the Fable franchise, is being shut down. Development is being halted on the long-planned cross-platform multiplayer title Fable Legends. Danish studio Press Play, which was behind Max: The Curse of Brotherhood, is being closed as well.
"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. "We have nothing but heart-felt thanks for the members of Lionhead and Press Play for their contributions to Xbox and gaming. We are committed to working closely with those affected by today’s news to find them new opportunities at Xbox, or partnering with the broader development community to help place them in jobs elsewhere in the games industry should they desire."