Microsoft on Monday announced it has stopped work on the long-delayed "Fable Legends" action video game and is mulling the closure of the British-based studio that was handling the project.
Microsoft decided to cancel "Fable Legends" and is talking to employees about potentially closing Lionhead Studios in Britain, Microsoft Studios Europe general manager Hanno Lemke said in a blog post.
The US software colossus behind Xbox video game consoles also disclosed plans to close Press Play Studios in Denmark as part of its retreat in the gaming space.
"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."
The changes are part of a focus by Microsoft Studios on games and franchises "that fans find most exciting and want to play," according to Lemke.
He said Microsoft planned to help employees from the closing studios find new positions at Xbox or elsewhere in the games industry.
Lionhead, known for the popular game "Fable," was founded in Britain in 1996 and bought by Microsoft a decade later. Lionhead founder and industry icon Peter Molyneux left the company about four years ago to embark on a new endeavor.
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