http://kotaku.com/5582009/ex age-of-empires-devs-working-on-microsoft-strategy-game
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Microsoft's "Project S", a secret strategy game that we uncovered earlier today, isn't a Halo title. It is, however, being worked on by former Age of Empires developers. Robot Entertainment, a studio that was formed by ex-Ensemble staffers following the closure of the venerable PC developers, appears to be the team responsible for "Project S", whose launch screen you can see up top there. It's not Halo. The game's other codename, Spartan, appears to be its actual name, with the splash screen showing a cute little Greek warrior. As for what type of game it is, that we don't know; the original reports said it was a "ground-breaking strategy game", though from the load-up sequence terminology - which has quests, units and crafting - we could guess it's got some RPG elements to it as well. Robot's website - which coincidentally relaunched today - also mentions that the studio is working on a game for Microsoft Game Studios.

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/sigh
So MS decides they don't like PC gaming and shuts down one of the best PC developers of all time, watching them split into four different start-ups. Then they decide they do like PC gaming again two years later, and make a contract with one of those start-ups for a new PC RTS. Wtf.
At least it seems the spirit of Age of Empires will live on. Sucks it's GFWL exclusive, but that was to be expected.