On Monday Microsoft announced that work has stopped on the upcoming ‘Fable Legends’ game and are now considering shutting down the British-based studio.
Microsoft is talking with the employees about closing the Lionhead Studios, Microsoft Studios Europe general manager Hanno Lemke said in a blog post. There are also plans to close Press Play Studios in Denmark.
"These have been tough decisions and we have not made them lightly, nor are they a reflection on these development teams," Lemke said.
"I speak for all of Xbox when I say that despite this news, we remain committed to the development communities in the UK and Europe."
Lionhead, known for the popular game "Fable," was founded in Britain in 1996 and bought by Microsoft a decade later and became a beloved franchise.