Last month we received the unfortunate news that Fable Legends had been cancelled by Microsoft and its developer Lionhead Studios was facing a proposed closure. However it turns out all might not be lost for Fable Legends and development could resume, according to many sources the project was near completion when it was cancelled, and according to sources at Lionhead speaking to MCV "discussions are on-going about saving the free-to-play RPG."
According to MCV staff are "being surveyed as to whether they would like to continue working" on the game in place of a redundancy package that has been offered to them. According to a source in the studio the new proposal was born from several staff considering taking Legends and continuing work on the game as an independent studio.
No word has been given to whether this is actually true so do not get your hope up just yet. Hopefully Microsoft will shed some light on the situation soon and I will be sure to report it when I know more.