Microsoft Shuts Down Fable Legends, Lionhead Studios

Goodness me, this is the kind of thing you don’t expect to find on your doorstep on a Monday morning: but it seems as if Microsoft is closing down Lionhead Studios, the 20-year old studio founded by Peter Molyneux responsible for such legendary series as Black & White, Fable, and… The Movies.

Well, two legendary series, that ain’t bad.

The news comes to us from a post written on the Microsoft blog early this morning by Hanno Lemke, General Manager of Microsoft Studios Europe, who had this to say:

Today, I have some difficult changes to announce that affect some of our Microsoft Studios teams and projects in the UK and Denmark. 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.

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.

Wow. That’s pretty heavy stuff.

As for why Microsoft is so suddenly shutting down Lionhead and Fable Legends, which was in beta for quite some time, well, the blog post doesn’t say that. The rest of the blog is merely well-wishes and commitment to ensuring that both fans and those affected will be taken care of. Not exactly informative, but… really, that’s not unusual. There’s only so much that Microsoft will be willing to tell us, right now--we’ll have to wait until an employee speaks out to understand where this news is coming from.

Now, that said, it’s possible the studio itself won’t shut down--they say the closure is “proposed” in the blog post, so it’s not finalized yet. It’s impossible to say how likely it is they’ll change their mind and keep the studio up, without knowing exactly why it’s being closed, but if they’re willing to tank a game like Fable Legends, which must have already been a massive money sink for Microsoft, then it seems unlikely they’ll make an effort to salvage the studio itself. 20 years is a long time, but Microsoft is in the gaming business, not history.

Here’s hoping the best for those most affected by the loss…