Kudo Tsunoda
IN PHOTO: Microsoft corporate vice president Kudo Tsunoda introduces the "Fable Legends" video game during game publisher Microsoft's Xbox media briefing before the opening day of the Electronic Entertainment Expo. REUTERS/Lucy Nicholson

Big changes are happening at Microsoft and Xbox as the company recently announced they have canceled development for "Fable Legends" and may even close Lionhead Studios. Press Play Studios, which had been working on the Xbox One-exclusive "Project Knoxville," will also be shut down.

In a post on the Xbox Wire, General Manager at Microsoft Studios Europe, Hanno Lemke, said the following:

"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," says Lemke. "Additionally, we will close Press Play Studios in Denmark, and sunset development on Project Knoxville." Lemke went on to say that the company is looking to find a place for the development teams effected by these decisions.

"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," said Lemke. "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."

In a statement to IGN, Microsoft mirrored what was said in the Xbox Wire article saying, "We aren’t sharing additional details today beyond that we have ceased development on 'Fable Legends,' and are in discussions with employees at Lionhead about our proposed closure of the studio as well."

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