The only 'big' company i could see them going for would be Sega, you never know - but at the moment I think Microsoft is seeing it's best strategy to not have internal studios, where they 'gasp' have to sell their stuff on their console only(limiting profits). They see the market being very pro-multiplatform for a long time to come. Instead they wanna fund big name studios for exclusives and out-bid Sony/Nintendo for anything that looks good early in development. i actually think they're starting to believe exclusives don't matter, and that there will be enough multi-plat content for them to get customers and they can make sure they're the lowest priced console by nickle and dimeing their buyers for live and accessories - using these profits to sell at a loss.

 Could be like that.

But it's funny how this news comes 1 week after M$ state that they will go head to head with Sony's First Party titles. Makes you wonder doesnt it.

Look what Acti-Blizzard is doing to Sierra and subsidiaries, not to mention all project getting cancel even those with promise. Big company sometimes only care about bottom line and that's too bad.

Microsoft always been penny wise and pound foolish. They always think short terms in whatever they do which is too bad. From customers services, RROD debacle, stupid DRM to trivial stuff like using cheap ass cases for games like the cheap 3 disc + 1 for Lost Oddysey to even their top of the line like Halo 3 which used cheap "imitation" steel case result in discs going loose during transit.

You would think they would learn from all these things, especially the RRoD, but sadly they probably have bean counters figure that it would be cheaper to replaced console disc than spend a little extra. The problem with bean counters is that those guys tends to not taking long term customers goodwill and satisfaction into their calculation.

I can see their reasoning (although shortsight) as PC market is shrinking (last Age of Empire did just so-so) and RTS genre is not what it once was.   Still, this is the studio with good track records and produce many hit.  If Halo Wars turn out to be console RTS, MS would loose out on turning out sequel and other RTS.

Just like they bought BioWare and Bizarre?  Or picked up Itigaki when he left Tecmo?

Your optimism is astounding.

In that statement they mentioned Gears as a first party title.  Their definition of "first party" is rather liberal.

Would MS even green light the purchase of a big studio without even being profitable in the department the studiop is being bought for? They'd need to buy a studio fund a project and make back all that money up and make a few in profit from that one game just to be worth it.

ES gone? WHY! I lived off their games growing up man! damn........

lol yeah.. hopefully the people from the studio will form a new studio.. like most of westwood formed petroglyph.. though without their original ip's they will probably never be the same.

Indeed.  That made me a sad panda.

it will be sad for me to never see the Ensemble logo on an AOE game again./

if there will even be another AOE......once the pinnacle of the RTS genre is now non-existent!