Microsoft recently announced some changes to its studios, resulting the cancellation and likely closure of a couple of its games and studios. This includes the cancellation of Fable Legends and the planned closure of the Fable series' developer, Lionhead Studios.

Fable Legends was originally announced as a cooperative action RPG in August 2013 for Xbox One, with a Windows 10 version announced in January 2015 featuring cross-platform multiplayer. The game was also revealed to be a free-to-play title later in that year, making an appearance during E3. The game was in the process of a closed beta at the time of its cancellation, with Lionhead Studios announcing that the closed beta will continue service until April 13, 2016. All those who purchased in-game gold during the beta will be eligible for a full refund.