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Boskabo said:
Not surprised it happened, since becoming an xbox studio they haven't really hit much, except pre release hype with fable 1.

 

I disagree with that, considering the three Fables broke the 10 million units sold combined. In fact, each sequel sold better than its predecessor:

 

1 Fable III X360 2010 Role-Playing Microsoft Game Studios 3.58 1.10 0.05 0.38 5.11
2 Fable II X360 2008 Role-Playing Microsoft Game Studios 2.51 1.25 0.11 0.41 4.28
3 Fable XB 2004 Role-Playing Microsoft Game Studios 1.99 0.58 0.00 0.09 2.66

 

Their worst job to date was the Kinect game, which apparently no one was interested in:

6 Fable: The Journey X360 2012 Role-Playing Microsoft Game Studios 0.17 0.08 0.00 0.02 0.28

 

For comparison, if VGC numbers are anything to go by, the Fable franchise has sold more than the Killzone one. Yet I don't see Sony shutting down the company behind them, so it's not about being a "studio unlikely to attract costumers". They've proven to be profitable.