While Microsoft may have shut down Microsoft Flight and laid off its Vancouver team, the company is still pressing ahead with new game development. In fact, the company has announced plans to open a new studio in London. The new team will work alongside other UK Microsoft studios, including Rare and Lionhead.

"EMEA is a key market for us and we continue to cultivate the best talent and focus on growing our business, with this role focused on the continued expansion of our Microsoft Studios business in the region," the company told MCV.

According to the report, the studio may be tasked with creating free-to-play and online casual experiences on Xbox. That's pretty much the opposite of what Vancouver was supposedly working on: a "new franchise intended to be as big as Halo or Gears of War."