United Front Games hit me the hardest. I didn't play Sleeping Dogs but I really loved their racing take with MM's LittleBigPlanet with ModNation Racers. Underrated new IP, IMO.
Evolution Studios getting shuttered sucks too. They provided great Sony unique racing game alternatives to PD's Gran Turismo series, but they just fell into a string of misfortune. Nobody bought the Motorstorm sequels (only the first one hit one million in sales, IIRC), the third Motorstorm game Apocalypse suffered bad timing (original release was a few days after the 2011 Japan tsunami/earthquake--and given the game was about racing in natural disasters, it ended up being delayed for months in the wake of that event), and Driveclub suffered that awful launch period that doomed it from the start. At least the studio's development team got picked up by Codemasters, so I guess that's something.
Peter Molyneux was a fan of Kinect and Phil Harrison didn't want Fable 4. Neither of them are with MS these days.
At least in Fable: The Journey's case, the 360 already had the first two Fable sequels behind it (even given that Fable III had a rushed development cycle behind it). After two main series games, trying a spinoff wasn't inherently a bad thing, so I can at least understand Molyneux's attempt to make a Kinect game, even if it wasn't the best.
Not having a proper Fable IV for the Xbox One was just absolute incompetence on the Harrison's part however. They should had let Lionhead put out a traditional fourth Fable installment before trying the F2P service angle they attempted with Legends. It's like they learned nothing from the fan backlash created by Rare's Banjo-Kazooie: Nuts and Bolts...though at least
that game saw release (and was good enough to get solid reviews and its own cult of fans). Legends just ended out to be a complete waste of resources on the behalf of everyone involved in its production.
He may be no longer with MS, but the damage Harrison's caused is already done. Had they made Fable IV, Lionhead would probably still be around today and MS's only notable WRPG series wouldn't have its fate up in the air.