Despite the huge Age of Empires RTS franchise, Microsoft is closing down Ensemble Studios.

SEPT. 9, 2008 • Age of Empires creator Ensemble Studios will be shuttered after completing Halo Wars. The studio was acquired by Microsoft Game Studios in 2001. Microsoft said the decision was a fiscally-based to drive profits, with no bearing on the quality of Ensemble’s work. Ensemble principals were said to be moving on to create a new studio, and had agreed to provide ongoing support for Halo Wars. Last year, Microsoft shut down FASA, and supported a split with Bungie Studios.

Impact: For Microsoft to shed a premier PC game RTS studio from its roster says volumes about how the company sees the game industry today. Regardless of the current Games for Windows posturing, cutting Ensemble sends the message that the traditional PC game segment is not where the profits are today, despite the Age of Empires franchise selling more than 20 million units worldwide. Conflicting cultures may also play a part, since Ensemble traditionally fostered a deliberative creative stake holding from top to bottom that made for great games, but not necessarily swift production schedules. If Ensemble had fathered an Age MMO five years ago, Microsoft’s strategy would be completely different today.