Ensemble Studios, owned and operated by Microsoft or, Microsoft Games Studios, has been targed to be dissolved. All employees will find new homes, a large quantity will start a new studio and continue maintaining the later released Halo Wars franchise.
Microsoft has chosen to close the studio as part of their growth plan of Microsoft Games Studios much like FASA was closed in the past. The difference, there is a new landing point for Halo Wars unlike the uncertain future of Shadowrun.
Commenting on the reason for the closure, Microsoft said, “This was a fiscally rooted decision that keeps MGS on its growth path. While the decision to dissolve Ensemble was not an easy one, Microsoft is working to place as many Ensemble employees who do not move to the newly formed studio into open positions within Microsoft as possible.” (gamespot)
Ensemble Studio’s folks will continue to work with Microsoft and will continue to support Halo Wars after its launch. It is important to stress their statement of continuing to support Halo Wars, there is no need to think the project will be done half-assed or without pride as the project will live on with a different studio name.
The only question is… what is causing Microsoft to close down studios with actively working real franchise projects? FASA went down, Bungie was let go on their own and now Ensemble Studios? There has to be something going on here… idea?

Believe this, Nintendo and their Wii console takes another month as top seller. The only product that moves more hardware than the Wii is the DS. As a gamer, it’s hard to understand how the Wii product continues to sell like this with the least supported game library on the planet.
id Software has always leaned toward bleeding edge content, pushing hardware to its limits and utilizing technology that has just hit the market. Nobody is surprised when they’re forced to upgrade their computers to play the latest id Software creation to its fullest extent. This is the price for being top dog in graphic engines, but now they’re changing their tune a bit.
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