Hanno Lemke, general manager of Microsoft Studios Europe has announced the Microsoft's decision of cancelling the development of Fable Legends, Lionhead Studios' Xbox One and Windows PC game.

According to Gamesradar, Lionhead was unaware of the decision which was evident earlier today when Lionhead Studios' forum community manager was still posting a message assuring the fans that Fable Legends is in the pipeline despite few interruptions.

Last week at Xbox Spring Showcase, Xbox head Phil Spencer dodged the question about the development of Fable Legends. As per Gamesradar, "His answer didn't suggest a dead game walking: 'I think we could do many things with Fable. I think the world of Albion and the hero-based nature of that game could show up in many different spaces,' was his reply."

It was also learned that Microsoft will close Press Play Studios in Denmark and sunset development on Project Knoxville.