There hasn't been a game from the Fable franchise since Fable: The Journey was released in 2012. The most recent of which was Fable Legends which was then cancelled abruptly. Xbox is in dire need for a hit exclusive with their sales falling behind the Playstation 4. It's a surprise then that Microsoft does not have any plans for a Fable 4. For series creator Peter Molyneux however, creating Fable 4 is always an option for him.
Talking to OXM, Peter Molnyneux told them that he "would love to do Fable 4." He said that for him to do it, the original team has to be on board for the project. However, Peter Molyneux, left Microsoft and Lionhead Studios, the developer responsible for the Fable franchise. He then started his own studio, 22 cans.
The possibility for development of Fable 4 looks dim with the current situation. Peter Molyneux is no longer part of Microsoft and Lionhead Studios. So either Peter Molynuex rejoins his former employer Microsoft or Lionhead leaves Microsoft along with the rights for Fable and joins with Peter Molynuex. Development for Fable 4 seems unlikely with the two parties not involved.
To make matters worse, Peter Molyneux feels that Microsoft isn't that invested in the Fable franchise. According to Peter Molyneux, his team would upset Microsoft. "I think it was the sense of humour. You know the British, slightly politically incorrect sense of humour, especially with Fable, where we had prostitutes and same-sex marriage. Microsoft were appalled, you know" said Peter Molyneux.
Fable is one of the first big franchises for Microsoft's Xbox along with Halo. However, succeeding games failed to live up to the original game. And with the cancellation of Fable Legends, the series may have already seen its last game.
Microsoft seems to have moved on from Fable as there are no current plans for another game from the franchise. But with Xbox One trailing behind the Playstation 4, a new Fable game could help Xbox's fortune. Perhaps a reunion of sorts with Peter Molyneux and Lionhead studios will be the spark that Fable needs. But for now, gamers can only wait if Microsoft decides to resurrect its fabled franchise to try and save Xbox.