In news that is currently breaking over at Polygon (and throughout the gaming media sphere), Microsoft is cancelling Fable Legends (the D&D styled game that was in development for Xbox One and PC announced last year) and in addition to the cancellation, Lionhead Studios is being shut down after 20 years in the industry.
While this is shocking news to read about, we can't necessarily say that it's too surprising. Lionhead Studios had come under fire for the last 10 years in regards to the releases of Fable 2: Pub Games, Fable 3 and Fable: The Journey (although Lionhead was forced to work on the Kinect title, for Microsoft needed to have a decent sized franchise title to back up the peripheral). Needless to say, it isn't entirely Lionhead's fault, you have to place blame on the financial arm at Xbox for pushing them into the abyss of Kinect development, but Fable: Legends, while interesting, really didn't garner much excitement.
Maybe the lack of engagement with the titles announcement stems directly from the poor performance over the last decade of Fable titles. Who knows? And while it is unfortunate that a once highly respected and revered studio is being forced to close without seeing their final project...maybe it's for the best.
We'll try to keep everyone up to date on this news as it happens.