Obligations to Employees: Lionhead Studios

In a new report out of the UK, Kotaku cited a few sources who claim Microsoft had suitors lined up to purchase the Fable IP, and perhaps, keep Lionhead Studios open. However, these reports claim that Microsoft rejected the offers, opting to protect their own IP, perhaps for future development. The question needs to be asked though, does Microsoft have a moral – not legal – right to those employees to do their best to keep them employed? It’s a thought I’ve seen more than once since this report came out, but these criticism’s are unfounded.

From Kotaku,

Why didn’t it happen? One source close to Xbox claims it’s because Microsoft would not sell the Fable IP along with the studio, despite offers that were in the range of hundreds of millions. “90% of the people interested just walked away at that point,” said the source.

The source went on to further discuss what would have happened if another company bought Lionhead Studios and the rights to the Fable IP,

Without ownership of the IP, any company that bought Lionhead would have to publish new Fable games (or Fable Legends, if it had been salvaged) under a licensing agreement with Microsoft – not a favorable condition for anyone looking to make money from the franchise.”

While there is something to be said about company loyalty to long-term employees, I think many people lose sight of something else – video games, Fable, Lionhead. They are all a part of a business model with economical considerations attached. Obviously, Microsoft thought they were fighting a losing battle financially with Fable Legends, and rather than redirect the company in another direction, they chose to shut it down. It’s a fair reason – companies generally are not in the business to lose money. My retaining the Fable IP, Microsoft can resurrect the franchise with any developer they want.

Is the closure of Lionhead disappointing? Of course, especially if you look at what they have created over the years. But there are many moving parts to this closure, the biggest being the lackluster community reaction to the latest Fable Legends title, as well as a steady downward spiral from the original Fable through to Fable 3.

I’m not here to argue that anyone deserved to lose their jobs. I’ve lost jobs before, and I understand the hardships that are associated with that. But what many individuals in the community need to understand that at the end of the day, Microsoft is running a business, not a charity. They are in this to make profits. Unfortunately, it appears as if Lionhead Studios was casualty of that desire.