Ensemble Studios, the Texas-based developer which has built the $700 million-selling Age franchise, the upcoming console-only Halo Wars as well as a solid reputation, has reflected on Microsoft’s shock-decision to close the studio.

Though Ensemble director of technology Dave Pottinger acknowledges “it"s Microsoft"s right to decide where they want to put their money” he also told Shacknews that “we all disagree with the decision … it honestly doesn"t make a lot of sense.”

The disbelief reflects the mood cast by Ensemble founder Bruce Shelley, who wrote on his blog back in September that he “thought we were immune to shutdown talk because our published games have done so well and have been so profitable." He also said a low-turnover rate and ample talent also made him believe the studio was safe.

Now Pottinger has revealed a little more about what will happen to the people behind the studio. “There"s at least one studio that"s starting with a good chunk of the Ensemble people, about half,” he said, though not specifying which but adding that this will be the studio that will “support” Halo Wars after the first game is released.

He also spoke of the resilience and unity from within the studio upon discovering that it was set to close: “Losing your job is never good, but the best thing about the team"s dedication is, we had a hundred full-time people when the announcement was made –we"ve lost three since then.”

“Everyone at Ensemble is important, we don"t want to lose anybody. But we had feared losing 30 or 40 and I think it"s a testament to the strength of Ensemble, and I guess maybe the mistake that Microsoft is making, if you want to look at it that way; that so many people stuck around to see this game out, and kind of make Ensemble go out the right way.”

Pottinger also said that that Microsoft has a strategy for Age of Empires and that it will continue. He also touched upon Halo Wars 2, and what Ensemble’s underlying strategy for the series was. “I think one of the sad things is that we thought we were on to something with Halo Wars,” he says.  “Our goal for that project was always to bring strategy gaming to the console, and give people a chance on the console to see how much fun that type of gaming can be. And in terms of Halo Wars 2, that"s certainly in Microsoft"s court right now.”

Meanwhile, reports have emerged that much of the Ensemble team is set begin a new studio from the ground up. "There"s a new studio forming that will rise from Ensemble," confirmed Ensemble’s lead designer Graeme Devine. "Microsoft is looking at people to find them homes, but frankly right now we"re just focusing on finishing the darn game and making sure that"s job number one. I don"t think anyone has really thought much beyond that yet.”

Halo Wars, Ensemble’s last game, is set to arrive on Xbox 360 this upcoming February.