Majority of id software to be laid off by Microsoft

Scott Miller (founder of Apogee/3dRealms) stated that id Software and most of programmers (the team behind idTech and Doom: The Dark Ages) will be let go.

Basically one of the last cutting edge engines not built/maintained by Epic Games (Unreal Engine) will basically die.

What a sad company, Apogee made some of the best games when I was a child, and of course id software's contribution to gaming is immense.

Are they essentially destroying xbox in order to reduce the on paper value in order to sell it? With all the cuts they can save face as a result of the low price they will accept?