According to http://www.futuregpu.org/2009/01/end-of-era-aces-studio-and-... some got fired and some have 60 days to find a new job within MS:

There was an all-hands meeting, then people got 1 of 2 emails from HR:

1) your last day is Jan 23 ( 24 hrs notice ) and your badge and email will stop working at 7:00 pm on the 23rd.

2) you have 60 days to find a job, your badge and email will work until Mar 23. If you find a job great, if not that is your last day.

In any case, "You can try to find another job at MS" in no way guarantees that they will find a job.