By Bryan Smith on May 11, 2016 at 3:31pm
According to Kotaku UK, there are sources that report that Microsoft closed down Lionhead Studios because they wouldn't part with the "Fable" franchise.
The sources said that there were several buyers lined up to buy the studio, but any negotiations fell through when reports go further to say that Microsoft wouldn't part with the "Fable" franchise. Without "Fable," most buyers lost interest in any buyout.
90% of the people interested just walked away at that point.
With the reports, this could have easily led to Microsoft closing Lionhead Studios down. However, these are reports and should be taken with a grain of salt.