Gamerscore Blog is reporting that Microsoft has decided to drop Sigil Games like a bad habit, declining to publish their Vanguard: Saga of Heroes.

Instead, Sigil is buying back the rights to the game and selling them to Sony Online Entertainment. Kinda ironic since Sigil's Brad McQuaid left Sony because he wasn't happy with the direction they were taking with EverQuest.

...We remain good friends with the folks at Microsoft and look forward to creating a AAA MMOG for them, even though it will be a 3rd party Windows game now, and not a first party. We had some differences, but the biggest catalyst here was that we found the opportunity to buy the publishing rights back, which is good for Sigil no matter what else did or didn't happen.

Like I have been saying, this gives us even more (perhaps even unprecedented with a game this far along and this big) control, a chance to be a co-publisher, and to all around have more influence on how Vanguard turns out. Even were things perfect (and things are never perfect), it was an opportunity that couldn't be passed up on.

I wonder if they dropped Sigil because they have another super hero game lined-up?

Sigil and Microsoft Still Friends After Breakup [Gamerscore, thanks GP]