It is a sad day for fans of Microsofts European Studios, Press Play has been closed and Lionhead appears to be next.

In a post on Microsofts Xbox Wire, Hanno Lemke, General Manager of Microsoft Studios Europe shared some very sad news with Xbox fans. “Today, I have some difficult changes to announce that affect some of our Microsoft Studios teams and projects in the UK and Denmark” he said. “After much consideration we have decided to cease development on Fable Legends, and are in discussions with employees about the proposed closure of Lionhead Studios in the UK. Additionally, we will close Press Play Studios in Denmark, and sunset development on Project Knoxville.”

“These have been tough decisions and we have not made them lightly, nor are they a reflection on these development teams – we are incredibly fortunate to have the talent, creativity and commitment of the people at these studios.” Lionhead Studios was formed in 1996 by industry leader Peter Molyneux and purchased by Microsoft in 2006. “The Lionhead Studios team has delighted millions of fans with the Fable series over the past decade,” other titles developed by Lionhead include the Black & White god simulator games and the tycoon-esque The Movies.

Press Play was a video game development studio based in central Copenhagen, founded in 2006 and bought by Microsoft in 2012. “Press Play imbued the industry with a unique creative spirit behind games like Max: The Curse of Brotherhood and Kalimba, which both captured passionate fans.”

According to Lemke, “these changes are taking effect as Microsoft Studios continues to focus its investment and development on the games and franchises that fans find most exciting and want to play. 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, and Xbox will continue to support new IP and originality in the games we offer on our platforms.”

“We have nothing but heart-felt thanks for the members of Lionhead and Press Play for their contributions to Xbox and gaming. We are committed to working closely with those affected by today’s news to find them new opportunities at Xbox, or partnering with the broader development community to help place them in jobs elsewhere in the games industry should they desire.”