Lionhead designer Ted Timmins has suggested that the studio is in the process of developing a next-generation title, telling that the atmosphere at Lionhead now is "similar" to when the studio "went from Xbox to Xbox 360 back in 2005".

Talking to last week about the studio's imminent release of Fable: The Journey, Timmins said that "any time there's going to be a transition to a new title, to potential new hardware in the future, that is always a challenging period.

"When we went from Xbox to Xbox 360 back in 2005 it was a similar atmosphere to now. There's a sense of so many emotions, a sense of wonder at what the next thing will be.

"There's questions, there's excitement, there's worry, there's so many different things going through your head that it's an exciting time, it's a scary time. There are so many different words that I could use to describe it."

Whether Lionhead is investing in new IP for the next-generation, though, Timmins won't say.

"We've got Creative Day coming up in November," he continued. "We had one last year which is what Fable Heroes came out of. That was a group of six people wanting to create a Fable spin-off party game, and this Creative Day we might have someone try and create a Fable game or we might have people create ten new IPs that are so awesome Microsoft don't know what to do with it.

"If you come back to me next year and ask me the same question, not only would I be able to answer it, I'd be able to give evidence, and that's the tough thing to do today. But yeah, exciting times ahead for sure."

Whatever game the studio settles on, though, Timmins suggests that it'll be built around "innovation and creativity".

"Lionhead has always been about innovation and creativity, and I hope that long may it continue," he said. "For all the times that I've mentioned there have been Fable things that I haven't personally liked, I've always admired the fact that we're willing to take something that was considered a safe bet and just go and scrap it and say, 'We're going to try this instead'. Fingers crossed we can keep that going."

Fable: The Journey launches on Xbox 360 Kinect on October 12. A demo of the game is available to download now.