Considering the lack of acknowledgement from people like Phil Spencer, Major Nelson, etc - and the fact that this seemed to happen abruptly and without notice, I'm wondering if this was mandated from above. Curious to see if there's any type of an exodus if that's the case, and individuals were off-put by its handling.
Let's put it this way - theres no way you don't have some sort of software deal with MS within the games industry today, saw this deal, and not think that anyone of them is liable for termination at a moment's notice. Especially the 3rd party contracts.
Stumkapow said it best in his post, but them shuddering both Lionhead & Press Play says more about their interest in even owning these types of software producers. Press Play was acquired relatively recently & had a new project in the works and Lionhead had another project in-development as well as Fable Legends. Fable Legends itself was apparently very, VERY far in development, with some people who played it in the beta attesting that a F2P form of it could've already been released at this point. Today, MS 1st party lost 3 projects that we know of, not just two studios. And MS had not just sunk money into these game's development, but also in acquiring & technically training them (Lionhead is said to have produced some solid tech for UE4).
MS invested a lot into these companies and are now telling us that they will continue to invest & focus in the kind of games gamers want to play? Make no mistake - any 3rd party contract is now liable to be dropped at a moment's notice as far as i'm concerned. Quantum Break will come out, but Scalebound & ReCore are projects i'm afraid for now. If MS was willing to cut a project & close a studio that was months away from shipping, while also shutting down another studio that had a large amount of potential within its own niche, than who is to say they will continue on any contract that isn't pushing some other vested interest? Thats why i'm sure Crackdown will make to launch, since that is pushing their physics cloud-rendering tech.