Microsoft shuts down two studios, cancels Fable Legends

Big news from Microsoft Studios this afternoon. The Xbox manufacturers game development arm has announced that they're shutting down two game studios and cancelling their current projects.

The famous Peter Molyneux-founded Lionhead Studios is getting the axe, which means Fable Legends is also being cancelled. The studio, which made a name for itself with the Black and White games and the Fable series later on, hasn't had many smash hits lately. Their last release that wasn't a remake, Fable: The Journey, was widely panned, and the studio has apparently been bleeding talent for a while.

At the same time, Microsoft is also closing down the Danish studio Press Play. The studio is mostly known for their games Max and the Magic Marker and Max: The Curse of Brotherhood. Recently they've been prototyping and testing out ideas for a new game, tentatively titled Project Knoxville. That project is being "sunset", says the official statement from Microsoft.

While Microsoft is in talks with Lionhead staff about their future, the Press Play employees have apparently been let go effective immediately.

An excerpt from Microsofts statement, which can be read in full lenght here, is below:

After much consideration we have decided to cease development on Fable Legends, and are in discussions with employees about the proposed closure of Lionhead Studios in the UK. Additionally, we will close Press Play Studios in Denmark, and sunset development on Project Knoxville.

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. The Lionhead Studios team has delighted millions of fans with the Fable series over the past decade. Press Play imbued the industry with a unique creative spirit behind games like Max: The Curse of Brotherhood and Kalimba, which both captured passionate fans. These changes are 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.