Incorrect, when MS dropped Vanguard is when SOE swooped in and got it for extremely cheap. SOE actually profited on Vanguard from what people said due to how little they paid for it.
The code and engine were so horrible for that game it was beyond fixing though. SOE gave it a shot though.
Ohh ya! You are right, forgot about MS... crazy to think they were putting money into this back then
gotta say, even if a profitable move
it just helped to consolidate SOE name as the brand for sub-par MMOs