Last month Microsoft announced they would be cancelling the development of Fable Legends, it was said they were in discussion with the staff at the studio about the possible closure.
It has now been a month, and in that time, there were no buyers or other possible solutions to save the studio, so as of today, April 29th, Lionhead will close it's doors for the last time.
In a statement made to Eurogamer, they confirmed that the studio was indeed closing.
"We can confirm that after much consideration over the six-week consultation period with Lionhead employees, we have reached the decision to close Lionhead Studios. We have nothing but heart-felt thanks for the team at Lionhead for their significant contributions to Xbox and the games industry."
The staff at Lionhead took to Twitter to express the sadness for the Peter Molyneux founded game studio.
— Iain Angus (@IainAngus) April 29, 2016
Last day of Lionhead:-( pic.twitter.com/zfXobF7wzY
— Stuart Whyte (@stuwhyte) April 29, 2016