On September 9, 2008, it was announced that Ensemble will be closing after the release of Halo Wars. According to multiple independent reports, all non-essential staff have been laid off and remaining staff have been given incentives to remain until the completion of the project. Microsoft issued an internal statement on September 10, 2008 which was then leaked to the public. As reported on the Ensemble Studio blog in late 2008, the company shut down on January 29th, 2009. It was also stated that there are at least two new studios being formed by ES employees. In February 2009 former Ensemble Studios head Tony Goodman started a new independent studio, Robot Entertainment, and a number of the existing employees have been offered a position in this company.
Following the annoucement of Robot Entertainment, former Ensemble Studios producer David Rippy started a new independent studio, Bonfire Studios, comprised entirely of former Ensemble staff members.