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We are all aware right the second season has been confirmed is one of their next upcoming games?
No, the answer is at the time they only had the licence for a single game. I also strongly believe Telltale didn't have any interest in further pursuing it until recently either.
Yes, I am aware of the second season coming up. Still, it took them YEARS to make it. Even though the game sold decently, not as much as some other IPs, but still sold well.
From what I have seen, since the game was released, they started up several IPs. Two of which, the Batman game and the Minecraft one, have since gotten their second season within a year or two of releasing. The walking dead has gotten 2 more games since then, etc etc.
How do they pick and choose which games they continue and which ones they don't? Based upon sales numbers, or something else, Under staffing, not enough interest, the money rights to the series itself, etc etc etc.
The money rights to the series with Fables they only licenced it for a single game.