Following the closure of Embracer Group developer Onoma, the latest news is that Eidos Montreal may be working with Xbox on a new Fable game.

Eidos Montreal may be working with Xbox on a new Fable title, according to reports following the closure of developer Onoma. Formerly Square Enix Montreal, Onoma was acquired by Swedish holding company Embracer Group earlier this year. Eidos Montreal has a strong track record for titles with solid storytelling and game mechanics, so this could be good news for fans of the Fable franchise.

Onoma was founded as Square Enix Montreal in 2011 and was the primary development studio for mobile games based on Square Enix properties.

Eidos Montreal was behind critically acclaimed releases such as Deus Ex: Human Revolution and the recent Marvel’s Guardians of the Galaxy.

In an article published by Bloomberg, it was announced that Embracer Group is closing Onoma. And some of the staff have been informed that they will move to Eidos M. Onoma was one of several recent acquisitions by Embracer Group. Other high-profile acquisitions have included other game development studios and the IP rights to The Lord of the Rings. Bloomberg’s article on the cost-cutting strategies behind Onoma’s closure notes that Eidos Montreal is working with Microsoft on several games, “including one in the Fable franchise”.

The news that Eidos Montreal could be working on a new Fable title comes after it was revealed that the lead writer of Horizon Forbidden West would join the Fable development team.

It is unknown whether the Onoma developers, who have transferred to Eidos Montreal, will work on the next mainline entry in the Fable franchise or another project using the IP. The fact that Microsoft reportedly has such a respected studio working on Fable projects shows they still have faith in the franchise. The Embracer Group has something to prove anyway. They have been struggling lately. This was most recently demonstrated by the failure of the Saint’s Row reboot. However, the giant will likely continue to impact the industry in the years to come significantly.

Source: Bloomberg