Microsoft cancels Fable Legends and proposes closing Lionhead Studios (update)

Microsoft has delivered some unexpected bad news today.

The game publisher and hardware maker announced today that it is canceling Fable Legends, the next installment in the fantasy series that has been an Xbox staple since its debut in 2004. Microsoft also said that it has proposed completely closing Fable developer Lionhead Studios. This could mark the end of one of the most iconic developers in the $99.3 billion global game industry (based on market researcher Newzoo’s estimates).