Microsoft announced earlier this year that it would be shuttering Lionhead Studios, the game developer behind titles like Fable and Black & White. The effects of that closure are now finally being felt by fans, as the beta for Fable Legends, which Lionhead has been developing for nearly four years, has been officially shut down, and production on the game has been halted.

“All of us here at Lionhead Studios would like to thank you for participating in the closed beta and being a part of the game’s development,” the studio said in a final blog post. “All stories have to end eventually, but the memories of Heroic triumphs and Villainous plots will last forever. Thank you for your support – you are all Legends!”

Lionhead said that beta players who made in-game purchases will be receiving a full refund from Microsoft, and the studio had already disabled purchases last month when the game’s cancellation was first announced.

While it is hardly a new phenomenon for large publishers to purchase and eventually close small to mid-sized studios, it is still surprising that Microsoft would be so quick to shelve a game that was already so far along in development, especially considering that it was part of a beloved franchise with an existing fan base.

Fable Legends would have been the first major Fable game released since Fable III nearly six years ago, but it is not clear whether or not Fable Legends could have lived up to the legacy of the series.

First, there is the fact that Fable creator and Lionhead founder Peter Molyneux had already left the studio before development even began on Fable Legends. Also, unlike previous Fable games, which were all single-player games with a strong story focus, Fable Legends would have been a free-to-play 4v1 multiplayers game where a team of heroes would have off against a lone villain.

Still, it is unfortunate for a game with so much work already put into it left out in the cold, and there are sure to be at least a few fans who are sad to see it go.

Image credit: Lionshead Studios (c)