Microsoft has ceased all development on the online action RPG Fable Legends. Longtime Fable creator and developer, Lionhead Studios, is also at great risk of shutting down.

Fable Legends had been in development since summer 2012 and has been hailed as an always-online Fable adventure. Additionally, it would feature cross-device play between Xbox One and Windows 10 users. In other sad news, Microsoft also announced their closing of Press Play Studios in Denmark, who were working on the now-canceled Project: Knoxville.

In a recent post on Xbox Wire the general manager of Microsoft Studios Europe, Hanno Lemke, writes:

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.”

He went on to say that Microsoft has nothing but respect and appreciation for the folks at Lionhead and Press Play and that they will seek to find them new opportunities at Xbox or elsewhere in the games industry.

Fable Legends in particular was looking to be a very promising game, though it seemed to go far under the radar in recent months. It will be interesting to see what comes of this devastating news and what the future will hold for the developers at Lionhead Studios and Press Play Studios. On behalf of Gamer Professionals, we wish them the best.