Being a game developer isn't all that glamorous. Take Ensemble Studios. These folks have developed top tier titles like the Age of Empires series and the Age of Mythology series. They've sold millions upon millions of copies of their games. They are developers of the co-op friendly Halo Wars title coming out early next year. And now, what started as a rumor has been confirmed. After the completion of Halo Wars the studio will shut down.
The decision has come down from owner and publisher Microsoft to shut down the studio due to fiscal reasons and strategy, but all is not lost. Instead the "leadership team" from Ensemble will "soldier on" and form a brand new studio; or at least that's the plan. What doesn't make sense to me is why close a studio only to have the best talent reopen a new studio and continue working, thereby losing a brand name of a developer that produced a 20+ million selling franchise.
Best of luck to all those involved, hopefully you find great jobs - ones that are truly appreciated and stable!