It's sad news. To be honest, Fable was starting to feel like a relationship going sour over time. First Game was hailed as a masterpiece. Second game was a bit buggy but generally well received. Third game was a buggy mess and left a lot of people with a sour taste in their mouth. The fourth iteration went through more changes than Michael Jackson's face. They wanted to take a step away from Molyneux, but unfortunately it was too late to save it.
The job losses are sad but the demise of the massively over hyped and over rated fable games is long overdue. Gaming will be no worse off for it.
Sad news to see another once great uk games company gone, they inspired me allot when i was at unit as they where one of the sponsors at the time along with Free Radical Design. Not that bothered about the loss of fable series as said it kinda never lived up to the hype but shame about the job loss ect Guess never will have a new Black & white game
Lionhead seem to have been on their deathbed for a long time. That said, I enjoyed the hell out of Fable 1 (Still play it through from time to time!), and even Fable 2 & 3. Although I found myself playing 3 more.