Not surprised it happened, since becoming an xbox studio they haven't really hit much, except pre release hype with fable 1. Meanwhile they're eating resources of a division I imagine is struggling to allocate budget due to low ROI (probably a net loss still). The studio is unlikely to attract costumers, and Microsoft doesn't care about diversifying its first party portfolio (since neither does their current and targeted base for the most part).
The timing however is very odd, so close to release you don't need much dev costs anymore and marketing can be skimped on.
Hope everyone lands on their feet.








