In somewhat shocking news this morning, it has emerged that are planning to close specialist developer Ensemble, after they complete work on Wars for the 360.

Microsoft have officially confirmed what started off as a rumour, and many fans of the genre will be disappointed by the demise of the firm that game the world seminal titles such as Age of Empires.

All is not entirely lost, however. While will close, the 'leadership team' will create a brand new studio - who will work with Microsoft on the continued support of Halo Wars and on other unspecified projects for the platform holder.

A statement from Microsoft affirms: "This decision does not reflect at all on Ensembles talent or the quality of Halo Wars. in fact, many people who have had a chance to test drive Halo Wars agree that it is on track to being a fantastic game."

Microsoft will offer as many ex-Ensemble staffers as possible new positions, the decision being described as "fiscally-rooted", and "not easy".

"We are committed to growing MGS with world-class talent both internally and with our external partners around the globe. We have recently added some well-known developers to our team and will continue growing the team," the statement continues.

"Were particularly excited about the titles we have in the pipeline and continue to evaluate additional opportunities to bring incredible games to life with the industry’s best. Our investment in games has never been greater than it is today."

By Luke Guttridge