A new Fable game is reportedly in the works at Playground Games

Last February, Playground Games revealed plans to "to test [itself] in a different genre". By November, the Forza Horizon dev confirmed it was working on an open world action RPG, having secured a new 200-person-sized office space. Now, reports suggest a new Fable game is being worked on with Playground at the helm.

While as yet unconfirmed by Microsoft, Eurogamer reports the publisher has handed the reins to Playground, which, if true, comes less than two years after the closure of series masterminds Lionhead Studios.

The death of Lionhead in 2016 marked the end of co-operative ARPG spin-off Fable Legends, however it's understood that this iteration of Albion will be a big-budget, story-driven main series entry.

Speaking to EG, Fable co-creator Simon Carter spoke of "slightly mixed feelings" when considering a new Fable game.

"On the one hand it's great for the UK games industry, and very pleasing that Fable isn't dead," he said. "Indeed, it will be lovely to play one as a punter, without coming out in hives.

"On the other hand it is a little curious to get rid of the team that is uniquely expert in making Fable, and then try and make Fable. Fable is a weird game, and a tough one to deconstruct for a new team. That said, the team in question is very talented, and I'm sure they'll do a fantastic job."

As reported by Forbes earlier this month, Playground has already been linked to Fable. Take from that what you will. In any event, we've reached out to Microsoft for comment.