Fable Legends‘ abrupt cancellation, and the closure of Lionhead along the way, still stings- Fable may or may not have been a game you were personally a fan of, but the studio behind it was incredibly talented, and it’s always sad when a game in development, and so many talented artists, get the boot like that.

In an extensive feature on Kotaku about the failure of Fable Legends and the closure of Lionhead, Lionhead employees discussed the reasons for Fable‘s failure- they were multifold, naturally, and very nuanced, like these things usually are, but one of the big reasons appears to have been Microsoft’s insistence on making Fable Legends a showcase for literally all of their pet projects at the time.

Essentially, here was a free to play experimental AAA title, and on Microsoft’s insistence, it had already had to integrate technologies such as the cloud, SmartGlass, DirectX 12, and then eventually Cross-Play. It was going to be the showcase for Microsoft’s Xbox-Windows integrated ecosystem strategy- and all of these technologies kept adding to the budget of the project, making it very high risk. How many AAA free to play games, after all, can you think of, and how many successful ones at that?

It appears as though Microsoft being in disarray, and their complete lack of focus over the last few years, cost Lionhead and Fable Legends dearly- and it cost the industry dearly, too, because we lost a great studio in the process.

Lionhead is dead now, and with them, the hopes of us getting a Fable 4 have been shot to hell, too. Which is a damn shame, really- while Fable 3 and Fable The Journey were terrible, the original two games were great, and more titles along those lines would have greatly fleshed out the appeal of the Xbox One’s exclusive game lineup.

But a Fable 4 was planned once- and in a fascinating and extensive report that Eurogamer have published on troubled and recently shuttered studio Lionhead, it was going to be a bit of a departure from any other game that we had seen in the series yet.

“We wanted to hit the late Victorian proper far out Jules Verne shit,” Lionhead’s John McCormack said, describing the pitch. The game was going to be set in “this kind of weird f**ked up London environment. And that was going to be Fable 4, and it would be darker and grittier,” McCormack said. “And because it was R-rated it would have the prostitutes and the humor. I was like, ‘Man, this is going to be f**king brilliant, and everybody was really into it.”

Ultimately, the pitch was shot down by Microsoft, who instead tasked Lionhead with working on the Windows 10/Xbox One cross platform free to play title, Fable Legends– a game that never made it to completion, and culminated in the closing down of its parent studio.

Microsoft still retains the rights to the Fable IP- but with Lionhead gone, and Microsoft themselves not being the best at IP management, the chances of us seeing a proper new Fable game of the kind that fans would probably want in the future are slim to none.

Some time ago, Microsoft cancelled Fable Legends, the Xbox One and Windows 10 game that they had been hyping up for years now, before it even got a chance to release; they also announced that Lionhead, one of their core studios, and one of the hallmarks of British game development, would be getting closed down. It was a big deal all around, on all fronts- the studio was one of Britain’s most prestigious, and so many people would be losing jobs. Meanwhile, Fable Legends had allegedly been a part of the ‘greatest Xbox lineup in history.’ How could this have happened?

If a new report on MCV UK is to be believed, it has not- it seems like Microsoft is looking at retaining core Lionhead team members, and trying to continue development of the title. Three separate sources within Microsoft have allegedly confirmed this. Essentially, it seems like core Lionhead members may form an independent studio, that would then be contracted to continue development of Fable Legends.

Microsoft themselves have refused to comment on the veracity of this story. “We aren’t sharing additional details 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,” they said. Still, if you end up seeing Fable Legends at Microsoft’s E3 or Gamescom this year after all, don’t be too surprised.

While most of the video game world was disappointed to see that Fable Legends was getting its plug pulled, that same world was downright shocked to see Lionhead Studios getting its own plug pulled alongside its game. Microsoft announced earlier this week it was calling it quits on both the game and the studio and the backlash to those announcements has been widespread and loud. At one point this week, the reaction was enough that Xbox One chief Phil Spencer felt like he had to comment.

When Spencer had a Twitter user comment on the shutdown, he responded “I really wish every game we started ended successfully. Regretfully doesn’t always happen. I’m sad as well, I love Fable.” That didn’t seem to put many fans of the series at ease and the Microsoft exec then had to fight off a number of rumors that Microsoft’s move to shutter Lionhead was just the latest in a long line of signs the company isn’t committed to the Xbox One or gaming in general.

Spencer did everything he could to make sure people don’t continue to believe that. He first replied that Xbox One is critical to the company’s future. He then made it clear that his entire reason for being with Microsoft is to oversee the Xbox One and its continued growth. He added that he certainly feels as though he is getting support from Microsoft when it comes to making the Xbox One as good as it can be. For now, we’ll have to take Mr. Spencer’s word for it.

The abrupt and unexpected closing of Lionhead Studios earlier this week came as a surprise to everyone. It was the end of a historic studio, and an indication that all may not be well at Xbox and Microsoft Game Studios- after all, why else would they close one of their most high profile studios?

Earlier today, I had a chance to sit down with Michael Pachter of Wedbush Securities. Pachter is a well known analyst, whose frequent and outspoken predictions and views on the gaming industry have made him practically a household name among gaming enthusiasts. I posed this same question to Pachter- does the closure of Lionhead indicate that all is not well at Microsoft’s gaming division? A big core studio being closed like that, after all, surely indicates something is wrong, right?

“A big core studio’ with small games, so,” Pachter began, before I reminded him that Fable is one of Microsoft’s biggest franchises- in fact, Halo/Gears/Forza/Fable is almost satire at this point, due to Microsoft’s overt reliance on those franchises.

“I read somewhere, and this could be wrong, that all the Fable games combined sold only 7 million units- so that’s across three games, combined,” Pachter said. “Fable 1, 2 and 3 only sold 7 million units put together, and that’s not impressive at all. So, the fact is, it was a big, expensive studio, that was unproductive as far as sales go. Certainly, they created good content, well reviewed content, but not big sellers. And so, I think Microsoft made a business decision- this is a profit driven business, so, people are trying to make money. I don’t think Lionhead did a very good job of creating profitable franchises.”

But Lionhead is not the only Microsoft studio with this problem, Pachter said. it is, in fact, something endemic to most of Microsoft’s first party as a whole.

“You could say the same thing about Rare, actually- I think Microsoft’s internal studios have not been particularly productive, with the exception of 343,and Bungie before that. They really, I don’t know, they have Black Tusk, I think it’s called The Coalition now- and I assume that they’ll end up being good, because Rod Fergusson is running the studio, and he managed Gears with Epic too. But, short other really big two franchises – Halo and Gears – they really haven’t done anything else. You know, it’s not like Ori and the Blind Forest is gonna keep Microsoft afloat. I mean, it’s a good game, but it’s not like it’s a giant seller or anything.”

So isn’t this an issue, I asked him- Microsoft’s total failure to build up a stable of first party content and studios even sixteen years into their time in the industry?

“Well, ‘total failure’ is kind of an overstatement, considering Halo has done well. That’s five good games out of Halo. They’ve had a few exclusives that have done well, and I actually think Quantum Break- Quantum Break looks great, and I actually think that game is going to do very well, but… you know,they’ve had Titanfall, it did really well. Third party game, but still. So,you know, they’re okay. I just think…it’s a hard business. It’s hard to make consistent hits,” he said.

Pachter is right, of course- it is a profit driven business, Lionhead was an expensive studio that hadn’t put out a profitable game since at least Fable 2, Microsoft have failed at building a profitable first party on the whole, and it is a difficult business- still, I look at Sony supporting obviously unprofitable ventures like The Last Guardian or Gravity Rush, or Nintendo with The Wonderful 101 or Xenoblade, and I can’t help but draw a contrast here between companies that actually seem to care for the medium and its artistic and expressive potential to an extent, and a company making purely profit driven decisions.

Stay tuned to GamingBolt for our full interview with Michael Pachter.

Microsoft may not have found them useful enough to keep them around, but Sony clearly thinks that there is enough talent to be found at Lionhead that could be useful in future game development- Sony Europe will be holding a recruitment event at Guildford this Monday specifically to try and get ex-Lionhead developers and employees on board.

“We’re having a Recruitment Event in Guildford for everyone at Lionhead Studios on Monday, please come along for a drink and a chat. There’ll be people there from all our SCEE studios and if you’d like to a book a time for a chat on the day, please DM for details,” Sony’s PlayStation Jobs Twitter account tweeted.

I have to say, this is pretty great of Sony- they are trying to get people back on their feet as soon as possible, and they are doing a great job at keeping the local games industry thriving. Many would try to look at this move cynically, but in the end, it is hard to deny that judging by the present moment, Sony seems to care about these developers more than Microsoft does.

The surprise cancellation of Fable Legends, and the closing down of Lionhead Studios came as a complete surprise to everybody- especially since the game had featured prominently in Microsoft’s plans and marketing for the coming year.

But surely Lionhead themselves knew that they were possibly in trouble? Surely they could tell that they were on thin ice? That’s what you would think- but as the dust is beginning to settle on the issue, it is emerging that Lionhead themselves may have been kept in the dark about the issue all along.

WCCFTech has gathered evidence that points at Lionhead not knowing about their impending fate- for instance, just hours before the game was closed down, Lionhead’s community manager had promised that Fable Legends would be a ‘late but good game,’ rather than ‘an instant but not as good as it could be game.’

Even Lionhead’s senior staff were not in the know- Lionhead’s Creative Director David Eckleberry (who was often the face for Fable Legends in interviews on the game) confirmed on Twitter that the move came as a complete surprise to him- there even seems to be an unsubstantiated rumor floating around that Lionhead were only called together in a meeting to have the news broken to them right around when Xbox Wire first announced it.

In which case- this is honestly a bit of a scummy move. Studio closures and game cancellations happen all the time, yes, even this late in development- in the end, I can’t blame Microsoft for making a strategically sound decision. But misleading your employees like this and taking them completely by surprise is not a good look at all, Microsoft.

Following the cancellation of Fable Legends and the shuttering of Lionhead Studios, it’s been announced that the beta will conclude at 3 PM GMT, April 13th. New players will not be added in the meantime and once April 13th has passed, beta servers will be offline.

Current players will not have the ability to purchase any more Gold and those who have purchased Gold without spending it will be refunded for the same. Beta testers should watch out for an email next week on how to obtain refunds.

Fable Legends has been in development for a long time, first being announced in 2014 for Xbox One and facing numerous delays. It underwent a transformation into a free to play title and was even slated to release on Windows 10. Along with Lionhead shutting down, it was revealed that Press Play, developer of Max & The Curse of Brotherhood, was also being disbanded. Fortunately, many in the industry has reached out to the ex-staff to offer jobs so it’s not all gloomy.

The closure of Lionhead Studios and cancellation of Fable Legends is a fairly sad occurrence, especially when you consider how long the studio has been around and the game in development.

Thankfully, the industry is reacting quickly and wanting to help. Volume creator Mike Bithell stated that, “My thoughts are with the folks affected by Lionhead closure. Any coders from there who wanna join us, contact [at] bithellgames [dot] com”

Former Sony exec Shahid Kamal also offered his condolences, stating that he was “Sad to hear about the closure of Lionhead, may its people go from strength to strength.”

Unravel creator Martin Sahlin also said the studio was hiring. “It feels sort of weird to post this on the day of studio closures… But we’re actually hiring 😛 http://www.coldwood.com/?page_id=646”

Former Fable engine lead and Celtoys owner Don Williamson expressed his sadness, especially given his time spent at Lionhead. “Got my first job offer from Lionhead out of school @ 18, in ’98 for B&W. My best years were working on Fable. Amazing people. Great times”

Williamson further stated that with regards to the studio’s chances, “So many, many bad decisions made that forced a lot of people to resign. I had big hope for new blood but the dice was loaded.”

Ubisoft level designer Anthony Panecasio also offered help, stating that, “Sad to hear about Lionhead and Press Play. We are hiring @UbisoftToronto. Get in touch w/ me if you need help. #gamejobs #LionheadStudios”

Former Lionhead employee Rachel Noy who is now an environment artist with Playsport Games and said that, “Really sorry to hear about Lionhead and Fable Legends. I enjoyed every minute working on it.”

Hector Mateo-Pino from Creative Assembly also announced plenty of positions open. “Sad to hear about Lionhead, lots of positions open at CA https://app.jobvite.com/Jobvite/jobvite.aspx?b=nWfkyuw2 … Get in touch! #jobs #gamejobs #videogames”

An ex-Rockstar dev also commented on the studio’s dissolution, stating that, “So sad to hear about #lionhead – they had a charm like no other :(”

Finally, co-creator of Fable and Dungeon Keeper Simon Carter reacted to the news, stating that, “…and, on a personal level, I’m incredibly sad it’s apparently the end of Fable. Fable has been part of my life for nearly 20 years…”

What are your thoughts on Lionhead breaking up? Let us know in the comments.

https://twitter.com/mikeBithell/status/706885743109607425

https://twitter.com/shahidkamal/status/706862429171544065

It feels sort of weird to post this on the day of studio closures… But we're actually hiring 😛 https://t.co/An1G9b9thp

— Martin Sahlin (@monkeybeach) March 7, 2016

Got my first job offer from Lionhead out of school @ 18, in '98 for B&W. My best years were working on Fable. Amazing people. Great times 🙁

— Don Williamson (@Donzanoid) March 7, 2016

@jonnyhopper so many, many bad decisions made that forced a lot of people to resign. I had big hope for new blood but the dice was loaded.

— Don Williamson (@Donzanoid) March 7, 2016

https://twitter.com/panecasio/status/706867127983214592

https://twitter.com/AbKi/status/706863264127438848

https://twitter.com/HectorMateoPino/status/706872208501641216

So sad to hear about #lionhead – they had a charm like no other 🙁

— No Code (@_NoCode) March 7, 2016

…and, on a personal level, I'm incredibly sad it's apparently the end of Fable. Fable has been part of my life for nearly 20 years…

— Simon Carter (@bbbscarter) March 7, 2016

Lionhead Studios’ free to play co-op action RPG Fable Legends has been cancelled after frequent delays. Microsoft has also announced that the developer was shut down and the decision to cancel the game after “much consideration”. Along with Lionhead, it seems that Press Play, developer of Max: The Curse of Brotherhood, has also been closed down.

Fable Legends was supposed to release this year for Windows 10 and Xbox One but it wasn’t meant to be. Microsoft stated that, ““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, and Xbox will continue to support new IP and originality in the games we offer on our platforms, whether they’re AAA blockbusters like Quantum Break from Remedy, adventurous new IPs like Sea of Thieves from Rare, or unique new creations from independent developers like Moon Studios with Ori.

“We have nothing but heart-felt thanks for the members of Lionhead and Press Play for their contributions to Xbox and gaming. We are committed to working closely with those affected by today’s news to find them new opportunities at Xbox, or partnering with the broader development community to help place them in jobs elsewhere in the games industry should they desire.”

What are your thoughts on Fable Legends being cancelled? Let us know in the comments.