Molyneux left Lionhead years ago....although it may be a fair point that being free of Microsoft's increasingly disastrous development escapades could be a good thing.
Of course, in the short term, a whole bunch of people are out of a job, which is not cool.
Thing is how many people were hired by him, how much of the team was effectively trained in his method of making a game. How many of them tried to do way too much as a result of how they learned to make games under him.
The last update video I saw, maybe on IGN, was them talking about delaying the game and talking about how complex it was, how they basically made two games in one, an RPG and RTS, how it's complex and they underestimated how big the world would be.It all screams, absolutely screams Molyneux influence, as does any studio Molyneux creates. He may not be there, but his fingerprints are all over it and all over the problems that caused the game to get cancelled.
Talent with bad direction create bad games. Ultimately most of the quality people will find jobs with other game companies, maybe some of them don't deserve to find new jobs within game development.
As an aside
http://www.videogamer.com/news/microsoft_studios_site_removes_5_more_studios.html
Story about MS removing more studios but MS's story(unsure if true) is that they've moved other studios around into other groups in the past few years and when removing Lionhead logo's they updated the rest, so they are saying the other 5 studios haven't been canned.
Either way, what stuck out for me was the RARE logo, because of the background image it really looks like it says RAPE to me.
